BTC Eyes $79K Support Level Following Record US Producer Price Index Since 2022
The leading cryptocurrency moves toward its weekly support zones as Producer Price Index inflation figures reach their most elevated readings since 2022, sparking worries about potential monetary tightening measures from the Federal Reserve.
The world's premier cryptocurrency Bitcoin (BTC) descended beneath the $80,000 threshold as Wednesday's Wall Street trading session commenced, driven by concerning US inflation figures.
Key points:
- The cryptocurrency experiences renewed selling pressure following US Producer Price Index inflation climbing to levels not witnessed since 2022.
- Probability estimates for additional monetary policy tightening by the Federal Reserve have risen, creating obstacles for digital assets.
- Technical evaluation of BTC pricing indicates the CME futures gap will persist as a resistance barrier "until further notice."
Bitcoin price movement surrenders $80,000 level amid renewed inflationary concerns
Information provided by TradingView revealed a decline approaching the $79,500 mark coinciding with the April publication of the Producer Price Index (PPI) data.
Similar to the Consumer Price Index (CPI) data released one day earlier, the PPI figures came in higher than anticipated — creating unfavorable conditions for digital currencies and risk-oriented assets given the potential for stricter financial conditions from the Federal Reserve in the future.
"The April increase is the largest advance since rising 1.7 percent in March 2022," an official news release from the US Bureau of Labor Statistics (BLS) stated.
"On an unadjusted basis, the index for final demand rose 6.0 percent for the 12 months ended in April, the largest 12-month increase since moving up 6.4 percent in December 2022."
The ongoing conflict between the United States and Iran, along with its resulting effects on crude oil valuations, continued to permeate through to economic indicators, with expectations for additional significant disruption ahead.
"All of the data is very clear: consumers are about to face another wave serious pressure on spending power," trading resource The Kobeissi Letter wrote in a reaction on X.
The reported figures additionally diminished the likelihood of the Fed implementing interest rate reductions at its June policy meeting, with merely a 1.4% probability of such an outcome, according to information from CME Group's FedWatch Tool.
Earlier in the week on Monday, market analysis platform Mosaic Asset Company provided a summary of the dangers that elevated oil prices specifically present to the upward trajectory of risk-oriented assets.
"The easing bias in central banks around the world is shifting to a more hawkish stance."
CME Bitcoin futures gap maintains dominance "until further notice"
Market participants trading Bitcoin continued to hold optimism regarding a potential successful penetration of present resistance levels for the BTC/USD trading pair.
"Break above that ~$82K region and that gap at $84K will surely be filled. Likely continuing quite a lot higher at that point," Daan Crypto Trades wrote in his latest X analysis.
The popular analyst Daan Crypto Trades characterized US equity markets as bouncing back "nicely" from their initial vulnerability following the CPI data release.
"Market mostly awaiting some clarity in regards to the conflict in the middle east," he added.
Meanwhile, market analyst and trader Rekt Capital observed BTC/USD price action operating within an unfilled "gap" present in CME Group's Bitcoin futures marketplace — a frequently observed short-term price attraction zone.
"Bitcoin finally Weekly Closed below the top of the red area, confirming that price will be consolidating within the CME Gap until further notice," he told X followers.
