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21 May 2024
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Bitcoin Price Forecast: Will It Be $70,000 Or $56,000 This Week?

A new tailwind is going around the crypto market, awakening Bitcoin price but favoring meme coins like Shiba Inu and Pepe Coin. Investors are beaming with the hope of seeing higher weekly closes, following weeks of mounting uncertainties. This Bitcoin price Forecast seeks to assess the technical and fundamental structure of Bitcoin ahead of the release of the Consumer Price Index (CPI) report in the US.

Bitcoin Price Forecast Ahead Of CPI Data Release

CPI is one of the most treasured measures of inflation in the United States. It measures the general change in the prices of goods and services purchased by people within the economy over time.

The US Bureau of Labour Statistics (BLS) is the organization that calculates and releases the CPI metrics as a weighted average. Market watchers and economists are eagerly waiting for the BLS to release the data on May 15.

Should inflation persist in April, the level of risk in volatile assets like Bitcoin, crypto, and stocks will go up. Price movement in the last few weeks teased further correction to $50,000, although support at $56,500 helped to buoy the bull run narrative last week.

This week also increases the stake for the bulls with the Federal Reserve’s Chair Jerome Powell expected to make a public commentary on May 14. Alongside, his speech markets anticipate the release of the Producer Price Index (PPI).

Markets have been very responsive and sensitive to Powell’s commentary, and precisely when it touches on the Fed’s intended policy decisions. Overall, investors do not expect a rate cut in the next Fed meeting in June. Eyes are now set on September for the first rate cut in 2024.

Will Bitcoin Price Surge Or Fall With CPI Data Release

Bitcoin is trading the third consecutive daily green candle after the last red candle on May 10. The 2.1% increase to $62,634 helps to steady the uptrend. However, BTC price prediction shows that the largest crypto will remain in the woods as long as support at the 20-day Exponential Moving Average (EMA) and the 50-day EMA has not been reclaimed.

Bitcoin Price Forecast
BTC price prediction chart | Tradingview

The slightly bullish outlook from the Moving Average Convergence Divergence (MACD) indicator further increases the chance of a BTC breakout to $70,000 in May. However, its current position at -864 coupled with short green histograms introduces the potential risk of pressure from the sell side.

Traders must exercise caution, especially with various macroeconomic activities this week. A drop below $60,000 is still possible which could extend the correction to $56,500 and if push comes to shove toward $50,000.

On the other side of the fence, positive CPI data could call investors to back a Bitcoin price surge to $70,000. Key milestones likely to ignite FOMO will be the climb above $65,000 and $67,500 resistance areas.

The post Bitcoin Price Forecast: Will It Be $70,000 Or $56,000 This Week? appeared first on CoinGape.

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