According to TechFlow, the price of Bitcoin has fallen from nearly $70,000 to $63,000 this month, mainly due to miners selling, investors taking profits and outflows of funds from U.S. spot ETFs.
Bitcoin has formed a double top pattern, a bearish technical analysis pattern. If the pattern holds, prices could fall to $50,000 or even $45,000, according to 10x Research founder Markus Thielen.
Despite the potential upside from the US election and CPI, Thielen believes a bigger correction is still possible. However, the May personal consumption expenditures (PCE) price index is expected to show the slowest growth in three years, which could support the Fed's September rate cut and provide support for risk assets such as Bitcoin.
Greg Magadini, director of derivatives at Amberdata, pointed out that recent strong economic data has led to rising bond yields and falling precious metals, hindering the development of cryptocurrencies. This week, there are speeches by multiple Fed officials, GDP data releases, and most importantly, PCE data on Friday. Economists expect the PCE price index to remain unchanged, with core PCE rising only slightly by 0.1%.
