Bitcoin’s price has been on a roller-coaster ride this month. After surging to nearly $70,000, it fell back to $63,000, in stark contrast to the Nasdaq's continued gains. According to CoinDesk , the trend of Bitcoin (BTC) has formed a Double Top pattern, indicating that it may be bearish before the release of key data affecting the path of the Federal Reserve’s interest rates.
Markus Thielen, founder of 10x Research, pointed out:
“Technically, Bitcoin appears to be following a Double Top pattern, with support being tested. Unless this pattern fails, it should be our base case assumption. This pattern could easily see prices drop to $50,000, or even $45,000,"
Markus Thielen added that although the US election and CPI will be positive factors later this year, the market is still likely to see a steeper price downward revision.
However, Amberdata's head of derivatives Greg Magadini pointed out that the Federal Reserve's preferred inflation indicator-the personal consumption expenditures (PCE) price index in May will be released this week. Economists expect that the PCE to be released this week will not Changes, the core PCE monthly growth will be revised down to 0.1%, lower than the previous value of 0.2%.
The monthly growth of core PCE has remained at the lowest level in three years. If inflation growth slows further, the Federal Reserve will have greater reason to cut interest rates again in September, thereby increasing market liquidity and increasing investors' appetite for risky assets ( such as stocks and Bitcoin), thereby providing price support for these assets.
(This article is reproduced from GT Radar with permission)
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