Bitcoin, the leading cryptocurrency, is currently trading at $68,700. Recent macro data has been positive, but investors are concerned about the potential for further tightening by the Federal Reserve. Experts’ predictions for the markets are eagerly awaited.
The current state of cryptocurrencies is showing some interesting developments. There has been a recent increase in wicks towards the $67,000 level, which is an important level for bullish investors to maintain. However, the frequent testing of this level is seen as a negative sign. On the other hand, continuous sales above $70,000 indicate a lack of momentum. Skew, a well-known crypto commentator, expressed his latest evaluation, stating that the ongoing attempt to reach $69,000 is signaling a new dip test at $65,000.
Bitcoin analyst Roman has pointed out the decrease in volume during repeated visits to the lower end of the short-term range. This suggests that fewer investors are selling during these declines, which is a positive sign. Sharp declines usually require high volumes, so these pullbacks may not result in disastrous outcomes. Roman suggests that the current situation of low volume and low price indicates an uncertain downtrend, and taking advantage of short-term reversals to make long-term purchases may be a wise strategy.
The upcoming announcement of the Producer Price Index (PCE), which is the Federal Reserve’s preferred inflation indicator, is highly anticipated. Scheduled for May 31, today’s data indicates that economic growth is below expectations, indicating that the Fed’s tightening measures are having an effect. The Beige Book details also mentioned a weakening in personal spending, which could contribute to inflation. However, unemployment figures remain positive, and if the PCE meets expectations, investors may feel some relief.
It is important to remember the unpredictable nature of cryptocurrencies and to always be prepared for any possibility. Last week, the Securities and Exchange Commission (SEC) made a surprising 180-degree turn, reminding investors of the volatile and ever-changing regulatory environment.
Investors should approach cryptocurrencies with caution, as they carry high volatility and risk. Conducting thorough research and staying informed is crucial in making informed investment decisions.