Bitcoin’s price currently stands at $68,700, and recent macroeconomic data has been positive. However, cryptocurrency investors are worried about potential tightening measures by the Federal Reserve, as the macroeconomic data also highlights the risks of further tightening. So, what do the experts predict for the market?
Current State of Cryptocurrencies
There has been an increase in the number of wicks towards the $67,000 level recently. This level is crucial for the bulls, but the frequent testing is seen as negative. On the other hand, continuous sales above $70,000 indicate a lack of momentum. According to crypto commentator Skew, the RSI signaled a new dip test at $65,000 before the ongoing attempt at $69,000.
Analyst Comments
Bitcoin analyst Roman has noticed a decrease in volume during repeated visits to the lower end of the short-term range. This decline in volume suggests that fewer investors are selling. Massive volumes are necessary for sharp declines, so from this perspective, these pullbacks may not result in disastrous outcomes. Roman suggests taking advantage of these short-term reversals to make long-term purchases.
The Producer Price Index (PCE), which is the Federal Reserve’s preferred inflation indicator, will be announced tomorrow on May 31. Today’s data indicates that economic growth is below expectations, indicating that the Fed’s tightening measures are effective. The Beige Book details also mentioned a weakening in personal spending, which fuels inflation. Unemployment figures, on the other hand, are positive. If the PCE meets expectations, investors can breathe a sigh of relief.
However, it’s important not to forget the unpredictable nature of cryptocurrencies, and investors should always be prepared for any possibility. Last week, we witnessed the SEC’s sudden change in stance, which serves as a reminder of this fact.
Disclaimer: This article does not provide investment advice. Investors should be cautious of the high volatility and risks associated with cryptocurrencies and conduct their own research.
