Bitcoin price rejects CPI boost as market Fed rate pause odds near 95%

Information from the Binance order book published to social media by keeping an eye on resource Material Indicators, on the other hand, revealed an absence of liquidity near area rate prior to the print, with plainly defined support and resistance.Heres how the #BTC order book on @binance is setup just ahead of the U.S. Economic Reports.FED watchers wish to see inflation numbers continuing to cool. #TradFi #Crypto #FED #FireCharts pic.twitter.com/ShhAO42GxS— Material Indicators (@MI_Algos) June 13, 2023

Analyzing what might come next, Michaël van de Poppe, creator and CEO of trading firm Eight, was torn, however flagging $25,000 as a prospective disadvantage entry point.CME space closed of #Bitcoin. Discard into FOMC as FOMC walkings 25bps and after that recuperate up as Powell specifies that theyll stop briefly or unemployment claims can be found in greater than expected?All on the cards as a circumstance. Because case, bidding around $25K makes sense or flip $26.5 K– Michaël van de Poppe (@CryptoMichNL) June 13, 2023

Bitcoin (BTC) fell back in line at the June 12 Wall Street open after a short macroeconomic information shock failed to shift the status quo.BTC/ USD 1-hour candle light chart on Bitstamp. Source: TradingViewMarkets anticipate very first Fed pause because 2021Data from Cointelegraph Markets Pro and TradingView showed BTC/USD continuing to circle $26,000, avoiding significant volatility.The largest cryptocurrency saw a short spike toward $26,500 on the back of the newest United States Consumer Price Index (CPI) print, which came in below expectations.While seemingly an advantage to run the risk of assets, crypto markets remained mindful on the day, with comments from the Federal Reserve and further macro prints due in the coming days. Equities: Full Bull.Crypto: Cant even muster a small pop for us to get short.What a pity lol– Crypto Chase (@Crypto_Chase) June 13, 2023

Bets on the Fed pausing its rate walking cycle on June 14 after the conference of the Federal Open Market Committee (FOMC), meanwhile, climbed up following the CPI occasion. At the time of writing, per CME Groups FedWatch Tool, the chances stood at over 90%, having begun the day at 75%. Fed target rate likelihoods chart. Source: CME Group” Disinflation continues!” financial commentator Tedtalksmacro reacted. “Headline CPI prints at +4.0% YoY, which now takes the 3-month annualised rate to +2.21%. The Fed have actually long targeted 2.0%. PAUSE.” Trading company QCP Capital likewise believed that “agreement has it best”– that the Fed would not raise rates further– at least this time.” Based on high frequency indications, United States inflation is falling rapidly, which will allow the FOMC to make this weeks satisfying their very first time out in more than a year,” it wrote in a market upgrade on the day.QCP acknowledged that subsequent FOMC meetings might yield various results, in order to “calm” more hawkish committee members.” Furthermore we think the easing of monetary conditions as a result of this massive melt-up equity rally will dip into the back of their minds,” it added.BTC price: Wheres the volatility?Multiple analysts, meanwhile, kept in mind that BTC/USD had closed the space in CME Bitcoin futures from the weekend.Related: SEC, CPI and a strong rebound– 5 things to understand in Bitcoin today #Bitcoin Last weekends CME Gap has actually been closed. pic.twitter.com/wcathiQPUU— Daan Crypto Trades (@DaanCrypto) June 13, 2023

Bitcoin (BTC) fell back in line at the June 12 Wall Street open after a brief macroeconomic information jolt failed to shift the status quo.BTC/ USD 1-hour candle chart on Bitstamp. Source: TradingViewMarkets anticipate first Fed pause considering that 2021Data from Cointelegraph Markets Pro and TradingView showed BTC/USD continuing to circle $26,000, preventing major volatility.The biggest cryptocurrency saw a brief spike toward $26,500 on the back of the most recent United States Consumer Price Index (CPI) print, which came in listed below expectations.While ostensibly a boon to run the risk of assets, crypto markets stayed mindful on the day, with remarks from the Federal Reserve and more macro prints due in the coming days. Equities: Full Bull.Crypto: Cant even summon a small pop for us to get short.What a pity lol– Crypto Chase (@Crypto_Chase) June 13, 2023

“Bulls are looking for a boost from the Economic Data coming today and tomorrow to recover the variety,” part of a previous post commented about everyday timeframes.Magazine: Tornado Cash 2.0: The race to develop safe and legal coin mixersThis article does not consist of investment suggestions or suggestions. Every investment and trading move includes risk, and readers must conduct their own research when deciding.

Bets on the Fed pausing its rate walking cycle on June 14 after the meeting of the Federal Open Market Committee (FOMC), on the other hand, climbed up following the CPI event.

Other Questions People Ask

What does the Bitcoin price rejection after the CPI boost indicate about market sentiment?

The Bitcoin price rejection following the CPI boost suggests that market participants remain cautious despite favorable inflation data. While the CPI print came in below expectations, which typically benefits risk assets, Bitcoin struggled to maintain upward momentum. This indicates that traders are closely monitoring Federal Reserve comments and upcoming macroeconomic reports, leading to a more subdued reaction in the crypto markets.

How are Fed rate pause odds affecting Bitcoin price movements?

The rising odds of a Fed rate pause, now near 95%, are influencing Bitcoin price movements by creating a more stable environment for risk assets. As traders anticipate that the Federal Open Market Committee will hold rates steady, there is a potential for increased buying interest in Bitcoin. However, the lack of significant volatility suggests that many investors are waiting for clearer signals before making substantial moves.

What support levels should traders watch for Bitcoin price after the CPI report?

Traders should closely monitor the $25,000 support level as a potential entry point for Bitcoin following the CPI report. Analysts like Michaël van de Poppe have highlighted this level as critical, especially if the market reacts negatively to upcoming Federal Reserve announcements. Additionally, the $26,500 resistance level remains crucial for determining whether Bitcoin can regain upward momentum in the near term.

Why did Bitcoin fail to capitalize on the positive CPI data?

Bitcoin's failure to capitalize on the positive CPI data can be attributed to a combination of market caution and liquidity concerns. Despite a brief spike towards $26,500, traders remained hesitant due to ongoing uncertainty surrounding Federal Reserve policy and upcoming economic reports. This cautious sentiment reflects a broader trend in crypto markets, where volatility is muted even in the face of seemingly favorable news.

What role does liquidity play in Bitcoin's price action following economic reports?

Liquidity plays a crucial role in Bitcoin's price action, especially following economic reports like the CPI release. The absence of liquidity near key price levels can lead to rapid price fluctuations and increased volatility. As highlighted by Material Indicators, traders should be aware of support and resistance zones, as these can significantly impact Bitcoin's ability to respond to economic data and market sentiment shifts.