Bitcoin (BTC) broke above $26,000 again on June 13 as analysts eyed resistance above.
Bitcoin price moves between trend lines
The data from Cointelegraph Markets Pro and TradingView showed that the BTC/USD pair was trying to recapture the support of $26,000 after the daily close.
The pair had had a curiously quiet start to the weekdespite the fallout from US legal action and markets bracing for a series of macroeconomic data releases.
So, bitcoin has been in a tight range since mid-weekend.
“It is a risky day for any deep trade,” wrote popular Crypto trader Tony in part of the day’s analysis on Twitter, considering the upside potential if support turns.
Risky day for any deep trades, but trying this out if we can flip the current supply zone into support ✅ pic.twitter.com/Is00mDPXfV
— Crypto Tony (@CryptoTony__) June 13, 2023
BTC/USD Pair Update: It’s a risky day for any deep trades, but we are testing if we can turn the current supply zone into support ✅ pic.twitter.com/Is00mDPXfV
For its part, the trading suite Decentrader pointed out multiple resistance levels to overcome next. He noted that funding rates were rising, indicating that a potential turnaround is already occurring.
#Bitcoin Funding rates are starting to climb to 0.01% which typically has been a level for either a pause or a reversal. pic.twitter.com/6TejFcI7tM
— Decentrader (@decentrader) June 13, 2023
Bitcoin funding rates are starting to move up to 0.01%, which has typically been a level for a pause or reversal. pic.twitter.com/6TejFcI7tM
Other traders, including Mustache and Michaël van de Poppe, founder and CEO of trading firm Eight, noted that the BTC/USD pair still holds trend lines that could be cause for optimism, specifically the 21 and 200 week EMAs.
#Bitcoin -Update$BTC is still holding above the (W) EMA 21 line.
Anyone who has been in crypto long enough, knows how significant this line is.
– Falling wedge still active✅
CPI and FOMC this week.
I think we’ll see a lot of volatility. pic.twitter.com/Pgi6qRSQkM— ⓗ (@el_crypto_prof) June 12, 2023
bitcoin update. BTC is still holding above the (W) line of the 21-week EMA. Anyone who has been in the crypto space long enough knows how significant this line is.
– the falling wedge is still active✅.
There will be CPI and FOMC data this week.
I think we will see a lot of volatility. pic.twitter.com/Pgi6qRSQkM
“As a last resort, We will see in the next few days if that is going to be maintained or if we are going to continue with this downward slope”, commented Van de Poppe the day before about the latter.
The day of the IPC arrives
The macroeconomic data for the week focuses on the Consumer Price Index (CPI) that will be published on June 13just one day before the Federal Reserve announces interest rate changes.
The Fed is expected to decree a pause in interest rate hikes, something that would occur after ten consecutive hikes and it would mark a long-awaited turning point in monetary policy.
Although it could provide a boost to risk assets, including cryptocurrencies, not everyone was optimistic about the impact of a rate freeze.
“The Fed is likely to continue to be hawkish, but the bigger question is whether to keep rates where they are (tightening policy) if inflation continues to fall,” wrote The Long View analytics account in part of his last comment on Twitter.
According to fedwatch tool from CME Group, the chances of freezing were around 75% at the time of writing this article.
“I think they will as they are well aware that if they start cutting like in past cycles they will be helping revive rate sensitive sectors, undermining the work they have done.”
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