Bitcoin gives up gains as hawkish Fed sends bulls tumbling to $70,000
As BTC price action retraces to pre-CPI levels, Bitcoin bulls are once again losing steam.
Bitcoin (BTC) gave up gains from the previous day on June 13 as markets prepared for the next round of U.S. inflation data.
Bitcoin fails to maintain CPI upward momentum, $70,000 falls to a record low
Data from Cointelegraph Markets Pro and TradingView showed that after BTC/USD briefly touched $70,000, BTC price action reversed after the daily close.
The subsequent crash caused the price to drop to a new low of $66,983 on Bitstamp, with Bitcoin trading at
Excitement was high as the Consumer Price Index (CPI) came in lower than expected, while the Federal Reserve's interest rate meeting remained predictably tight.
However, accompanying comments from Federal Reserve Chairman Jerome Powell appeared to spook risk assets as he reiterated that there was no discussion of an early rate cut.
“We think policy is restrictive. We think that ultimately, if you just set policy at a restrictive level, ultimately you’re going to see a real weakening of the economy,” he told reporters at a news conference after the meeting, and was quoted by CNBC and other media as saying.
"So our thinking has been, you know, ever since we've raised rates to this point, we've been pointing to a rate cut at some point."
Market bets on a rate cut at the Federal Reserve’s September meeting have fallen by about 10%, according to CME Group’s FedWatch tool.
“Today’s FOMC was certainly more hawkish than expected,” financial commentator Tedtalksmacro reacted on X.
“However, the market has already priced in this scenario and the real conclusion today is that deflation is continuing (via the CPI data). This is very evident from the movement of the stock market [...] Cryptocurrencies will follow suit.”
Analysis: $69,000 is key to BTC price ‘range-bound’
By analyzing BTC price dynamics, the trading resource Material Indicator reveals the role of Bitcoin whales in the day’s price swings.
“Watching Bitcoin completely give back its early gains is further evidence that these orca games are as I have outlined in my analysis since Friday,” said a post from X.
The important indicator refers to the continuous changes in order liquidity, which are staged by external factors such as US macroeconomic data, inducing prices to rise or fall.
Continuing to narrow the range, the situation remains the same – $69,000 is a crucial level to establish support.
The post concluded: "Everything you need to know is in the chart."
“The bottom line in my opinion is that we don’t make lower lows and BTC finally validates the R/S flip at $69,000. Until then, BTC will remain range-bound.”
