BTC Price Recovery Stalls Amid Weak Market Sentiment
Traders observed a brief recovery from local lows but found the BTC/USD pair remained weak even as bullish cues emerged from new US macro data. Popular trader Daan Crypto Trades noted that the price "rolled over again," urging bulls to demonstrate strength for a possible reversal scenario.
Market Participants Eye $25K Downside Target
Many market participants prepared downside targets, focusing on the $25,000 range. Trader Crypto Tony advised waiting until the $27,000 support is lost before shorting, while others, like trader and analyst Moustache, maintained optimism based on longer-term trends.
20-Week and 200-Week Moving Averages Signal 'Golden Cross'
Mustache highlighted an upcoming "golden cross" between the 20-week and 200-week moving averages, potentially wiping out their interaction from September 2022, months before Bitcoin's latest cycle low. The analyst explained that the bearish cross in September 2022 allowed many investors to buy Bitcoin at around $15,000.
U.S. Data Supports Pause in Interest Rate Hikes
Encouraging US Producer Price Index (PPI) and unemployment data provided cautious optimism for crypto investors. Jobless claims increased, and PPI aligned with inflation expectations continued to wane. Financial commentator Tedtalksmacro suggested that this data and Consumer Price Index (CPI) signals could pause interest rate hikes in June.
Market Consensus Sees Over 96% Chance of June Rate Hike Pause
According to the CME Group's FedWatch Tool, market consensus for a pause in the June rate hike is now over 96%. This follows the latest US PPI numbers, reaffirming that the path of least resistance for CPI inflation is downward.