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Bitcoin’s Tussle with Price Resistance Levels
As the Consumer Price Index (CPI) kicks off a significant macro week for risk asset markets, Bitcoin is bracing itself, battling several resistance levels. Information from Cointelegraph Markets Pro and TradingView indicates that BTC/USD is striving to secure $26,000 support following the daily close.
A Slow Start Amid a Volatile Market
Despite the ongoing ripple effects of legal action in the United States and the markets gearing up for a flurry of macroeconomic data releases, Bitcoin's week has started rather lacklustrely. Consequently, the cryptocurrency has been stuck in a confined range since the middle of the weekend.
Well-known trader, Crypto Tony, suggested on Twitter that the day could be risky for any deep trades, although he did hint at the possibility of upward movement should the support flip materialize.
Bitcoin Faces Multiple Resistance Levels
Trading platform, Decentrader, highlighted several resistance levels that Bitcoin will need to breach next. It observed a climb in funding rates, hinting at a potential trend reversal on the horizon.
Other traders, including Moustache and Michaël van de Poppe, founder and CEO of trading firm Eight, mentioned that BTC/USD is still maintaining trend lines, which could be seen as a positive sign. Specifically, they refer to the 21-week and 200-week exponential moving averages (EMAs).
"We will see over the coming days whether we can maintain this or if we'll continue on this downward slope," Van de Poppe stated about the latter.
The Arrival of CPI Day
The week’s focus on macroeconomic data prints pivots on the CPI due June 13, just a day before the Federal Reserve reveals any changes to interest rates.
The Federal Reserve is anticipated to halt interest rate hikes, which would mark a much-awaited shift in policy following a consistent streak of ten rate hikes.
While a potential freeze in rates could benefit risk assets, including cryptocurrencies, not everyone is optimistic about the effects of a rates standstill.
The analytics account, The Long View, commented on Twitter, "If inflation falls further, the key question is whether the Fed will maintain the current rates (effectively tightening policy)."
The CME Group's FedWatch Tool indicated that the market odds of a freeze were approximately 75% at the time of writing.
"The Fed is highly aware that if they start to cut rates like past cycles, they will reignite rate-sensitive sectors, effectively undermining the work they've done. I think they will hold rates," The Long View added.
