The fate of Bitcoin in Jerome Powell's hands: heading towards $65,000 or a retreat in sight?

The Bitcoin market is boiling as Jerome Powell, chairman of the US Federal Reserve, prepares to deliver a highly anticipated speech. Despite the surrounding uncertainty, traders remain optimistic and see the BTC price crossing the symbolic $65,000 mark.

The Bitcoin Facing Macro-Economic Data

The Bitcoin price experienced sudden volatility on May 14, plunging close to $61,000 following the release of US inflation data. 

The April Producer Price Index (PPI) turned out to be in line with expectations, showing a 2.2% rise, marking a third consecutive monthly increase.

While crypto markets have avoided the consequences of a significant drop in PPI, the situation remains unfavorable for risk assets.

As highlighted by The Kobeissi Letter, a resource specialized in trading, “PPI inflation is now up for three consecutive months for the first time since April 2022, showing that the Fed cannot lower its rates“.

In this context, Jerome Powell’s highly anticipated speech could have a significant impact on the market. However, trading firm QCP Capital expects a “muted market reaction” and rather sees the May 15 Consumer Price Index (CPI) as “the catalyst that would finally help the market choose a direction“.

Encouraging Technical Signals for the BTC Price 

Despite the surrounding uncertainty, some traders remain optimistic about the future BTC price movement. According to renowned trader Jelle, three conditions are now in place for a rise in BTC. :

1. The price has successfully tested the 100-day exponential moving average as support, currently at $60,409.
2. The MACD indicator has turned bullish on the daily chart.
3. The key threshold of $65,000 is identified as the line in the sand to validate the optimistic scenario.

Bitcoin is at a crossroads, with Jerome Powell’s speech and CPI data likely to set the tone for what’s next. Although the macroeconomic context remains tense, technical analysis offers some glimmers of hope for a rise towards $65,000. The next few days will be decisive in determining the short-term trajectory of the queen of cryptos.