Bitcoin surged to $69,350 after the May US CPI revealed a lower-than-expected inflation rate of 3.3%.
BTC could gain strength if it stays above $68,000, aiming for $70,230 and surpassing $71,000.
Today, Bitcoin (BTC) surged by 4%, propelling its price from $67,700 to $69,506, following the release of the U.S. Consumer Price Index (CPI) data, which showed a lower-than-expected inflation rate of 3.3% for May. This comes amidst anticipation over the Federal Reserve’s decisions on interest rate cuts.
The highly anticipated CPI data for May revealed that inflation remained unchanged at 0.3%, surpassing market expectations. According to recent U.S. Bureau of Labor Statistics figures, the CPI held steady at 0.3% in May, contrary to a 0.1% decrease in market forecasts. The year-on-year CPI inflation rate slightly decreased from April’s 3.4% to 3.3% in May.
Bitcoin (BTC) Price Chart (Source: CoinMarketCap )
Despite recent market downturns, Bitcoin managed to maintain its position above the $67,000 mark and even rallied to $67,900 in the hours leading up to the Federal Open Market Committee (FOMC) meeting on June 12. At the time of writing, Bitcoin traded at $69,389 with a market cap of $1.36 trillion.
Will Bitcoin (BTC) Maintain Its Rally?
Bitcoin’s ability to stay above its 50-day and 20-day simple moving averages indicates a bullish trend, with the June 12 daily candle displaying signs of recovery.
If the price of BTC holds above $68,000, it will gain more strength, with the next resistance level at $70,230 potentially leading to further gains up to $70,680. This momentum could propel Bitcoin to breach the $71,000 mark.
In a downtrend scenario where BTC fails to hold above $68,000, it will establish immediate support at $67,680, potentially leading to more declines toward $67,310 and even down to $66,790.
