Bitcoin price is back to trading below the pivotal $70,000 after losing ground over the weekend. Last week was bullish for BTC—also altcoins and especially among meme coins like Pepe, Notcoin, and GameStop.
Should Bitcoin secure support at $68,000, interest in the gigantic coin will grow significantly as traders look forward to the next attempt to reach new all-time highs.
What To Expect This Week As The Fed Holds FOMC Meeting?
The Federal Open Markets Committee will begin its sitting on Tuesday, June 11 to deliberate key economic policies touching on inflation and interest rates. Similarly, the US Consumer Price Index (CPI) report used to gauge the inflation trend will be released on June 12.
Economists project the CPI at 3.4% to match the previous 3.4%. This data will help central bank officials in the FOMC to affirm the bank’s outlook on the economy.
Traders should anticipate volatility during the week, which calls for caution among investors. However, the FOMC meeting is unlikely to result in a change in interest rates.
Market watchers say that the Fed could make the first interest rate cut in September.
Bitcoin Price Analysis: Signals Fron Narrowing Bollinger Bands
The largest cryptocurrency hovered at $65,375 on Monday below key indicators such as the 20-day Exponential Moving Average (EMA) in blue and the 50-day EMA in red on the four-hour chart.
Bitcoin also sits below the Bollinger bands’ middle boundary. Nevertheless, it is important to pay attention to the bands’ narrowing. In other words, BTC is getting ready for a breakout whose direction may be decided later in the week as the market reacts to the CPI report and the FOMC meeting.
Bitcoin price chart | Tradingview
The more the Bollinger bands converge, the larger the breakout could be. Hence, a break above resistance at $69,642 may affirm the uptrend and increase the chances of a return above $70,000.
Remember Bitcoin price prediction recently breached the ascending trend line’s support. This was to the disadvantage of the bulls—and if this level goes unreclaimed for much longer, selling pressure will increase. Such an outcome may push BTC below $68,000 and bring support at $66,000 within reach.
The Relative Strength Index (RSI) reinforces the bearish grip on the trend but bulls still have time to fight for control as the RSI moves sideways at 45. Should the sliding continue into the oversold region, the path of least resistance will lean more to the south.
An uptrend will start to build for a breakout above $70,000 backed by the Bollinger bands’ constriction.
Considering the bullish outlook of Bitcoin ETFs with a daily total net inflow of $139 million on Friday, market sentiment remains positive. Moreover, the Bitcoin futures market recently hit a new record high above $37.5 billion, cementing the bullish outlook.
Bitcoin price struggles after sliding below $70,000 support/resistance but the narrowing Bollinger Bands imply that a breakout is in the offing. With the CPI data and FOMC meeting this week, intense volatility is anticipated this week.
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John is a seasoned crypto expert, renowned for his in-depth analysis and accurate price predictions in the digital asset market. As the Price Prediction Editor for Market Content at CoinGape Media, he is dedicated to delivering valuable insights on price trends and market forecasts. With his extensive experience in the crypto sphere, John has honed his skills in understanding on-chain data analytics, Non-Fungible Tokens (NFTs), Decentralized Finance (DeFi), Centralized Finance (CeFi), and the dynamic metaverse landscape. Through his steadfast reporting, John keeps his audience informed and equipped to navigate the ever-changing crypto market.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
