The most prominent cryptocurrency, Bitcoin, is currently being closely monitored for potential price predictions and breakout opportunities. Traders and investors are eagerly awaiting the upcoming Federal Open Market Committee (FOMC) meeting and Fed Rate announcement, as these events have the potential to impact the cryptocurrency market significantly. The decisions and statements made by the FOMC regarding monetary policy and interest rates can profoundly affect the direction and volatility of Bitcoin and Ethereum. As market participants anticipate these crucial updates, the focus remains on predicting the future price movements and potential breakouts for both cryptocurrencies.
Following the release of the May Consumer Price Index (CPI) on Tuesday, Bitcoin experienced a momentary boost as inflation showed signs of decline. The leading cryptocurrency, with the highest market capitalization, was trading at $26,008, representing a less than 0.50% decrease in the hour following the US Bureau of Labor Statistics announcement. The CPI revealed a 4% increase, which was slightly better than the anticipated 4.1% and lower than April’s 4.9%.
While the US economy and Bitcoin are both doing well today, any hiccup caused by tomorrow’s interest rate decision or the impending recession in the US is likely to be favorable for crypto assets. Many people believe that the Federal Reserve won’t raise interest rates this month, but many experts and economists think that the Fed will keep this pause in place for the full year in 2023. With the 2024 US presidential election campaign about to begin, the Central Bank must shift its focus from lowering inflation to preventing a recession.
In other news, the US-based cryptocurrency exchange Binance US has asked a federal judge to deny the US Securities and Exchange Commission’s (SEC) request to freeze its assets. Defense lawyers claimed in a court document that the corporation couldn’t pay its staff or vendors or operate the trading platform. Last week, the SEC sought court approval to freeze cryptocurrency assets held on Binance.US, Binance Holdings Ltd., and Changpeng Zhao, the founder, and CEO of Binance, citing concerns about the security of user funds.
According to a new mining study titled “The Signal & The Nonce” by Coin Metrics researcher Karim Helmy, an innovative method to examine the hash power of the Bitcoin network is introduced using nonce patterns. The analysis also examined Bitcoin’s energy consumption and compared it to the electricity consumption indices developed by the Centre for Alternative Finance at Cambridge University and Dichotomist. Coin Metrics’ research indicates that the network consumes less power than the indices published by these two organizations.
As for Bitcoin’s price, it currently faces resistance at the $26,250 level and finds support around $25,500, which will play a crucial role in determining its future direction. The 50-day Exponential Moving Average (EMA) at $25,800 acts as a support level, but a downward triangle pattern suggests a bearish outlook. If the support level of $25,500 is broken, it could increase selling pressure, potentially driving the price toward support levels at $24,940, $24,710, or even $24,385. Traders are closely monitoring the upcoming FOMC meeting and Fed Rate announcement, as they can impact Bitcoin’s price.
Source: Cryptonews
