Bulls Brace for Macro Data as Bitcoin’s Guardrail Strengthens at $60K

Bitcoin (BTC) experienced increased volatility as it threatened to give back its early week gains on May 14. The price of BTC showed weakness on hourly timeframes, leading to a dip down to $61,440 on Bitstamp. Although BTC/USD had reached as high as $63,450 the day before, the bulls struggled to find momentum. A significant amount of liquidity was taken to the downside as a result.

Prior to the economic reports from the United States, bids were strengthening at both $60,000 and $65,000. These reports included the Producer Price Index (PPI) print for the day and comments from Jerome Powell, the Chair of the Federal Reserve. It is common to see “guardrails” placed in the order book ahead of such reports, but they may be pulled at the last minute.

Bitcoin has been exhibiting a pattern of neutralizing liquidity above and below the spot price while staying within a narrow range since the end of last month. Financial commentator Tedtalksmacro highlighted an unusual setup due to the release of PPI data before the Consumer Price Index (CPI) readout for April. PPI usually leads the way for CPI numbers, so any deviation from expectations may result in a more significant market reaction.

Market expectations of an interest rate cut from the Federal Reserve before September are unlikely to shift unless there are substantial surprises. According to data from CME Group’s FedWatch Tool, the odds of a 25-basis-point cut at the June meeting of the Federal Open Market Committee (FOMC) were only 3.5% at the time of writing, while the July meeting had a probability of 24.6%.

Rey Cevallos

Rey Cevallos

13 thoughts on “Bulls Brace for Macro Data as Bitcoin’s Guardrail Strengthens at $60K

  1. The current market expectations for a rate cut indicate stability in the overall economic landscape. That’s reassuring news.

  2. The anticipation surrounding the release of PPI data before the CPI readout is intense. Expectations can really drive the market.

  3. Guardrails being placed in the order book ahead of reports is a smart move, but it’s also nerve-wracking waiting for the last-minute changes.

  4. Bitcoin’s ability to maintain stability within a narrow range is a testament to its growing maturity as an asset.

  5. The release of PPI data and its potential impact on the market is definitely something to keep an eye on. 📊💡

  6. The odds of a rate cut at the June meeting being only 3.5% shows that investors are relatively confident in the current economic situation.

  7. The dip down to $61,440 must have been disappointing for the investors. Hopefully, it bounces back soon!

  8. I was excited to see BTC reach $63,450, but it’s unfortunate that the bulls couldn’t sustain the momentum.

  9. The resilience of Bitcoin never ceases to amaze me. It bounces back stronger every time.

  10. The resilience of Bitcoin in the face of volatility is truly impressive. It’s a digital asset that continues to gain momentum.

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