On June 13, Bitcoin (BTC) managed to climb back above the $26,000 mark, with analysts closely watching the resistance levels ahead. Despite ongoing legal action in the United States and the anticipation of macroeconomic data releases, BTC/USD had a relatively uneventful start to the week, maintaining a narrow range that had been established over the weekend.
Popular trader Crypto Tony warned of the risks associated with deep trades on this particular day but also considered the potential for upside if the support at $26,000 held. DecenTrader, a trading suite, highlighted multiple resistance levels that Bitcoin would need to overcome, noting that funding rates were increasing, which could indicate a potential trend reversal.
Other traders, such as Moustache and Michaël van de Poppe, the founder and CEO of trading firm Eight, pointed out that BTC/USD was still holding important trend lines, particularly the 21-week and 200-week exponential moving averages (EMAs). Van de Poppe mentioned that the coming days would reveal whether the current trend would continue or if a shift was in store.
In terms of macroeconomic data, all eyes were on the Consumer Price Index (CPI) scheduled for release on June 13, just one day before the Federal Reserve’s announcement regarding interest rate changes. The Fed was expected to pause interest rate hikes, marking a significant shift in policy after a series of consecutive hikes. While this could potentially benefit risk assets, including cryptocurrencies, not everyone was optimistic about the impact of a rates freeze. Some analysts expressed concerns about the Fed’s decision to hold rates steady despite a potential decrease in inflation, as it could undermine their previous efforts.
At the time of writing, the market odds of a rates freeze stood at approximately 75% according to CME Group’s FedWatch Tool. The Long View, an analytics account, expressed the belief that the Fed would likely maintain rates due to their sensitivity to rate-sensitive sectors and the potential consequences of reigniting them by implementing rate cuts similar to past cycles.
Get $200 Free Bitcoins every hour! No Deposit No Credit Card required. Sign Up