Bitcoin (BTC), fell to its lowest level in two weeks on June 11, as bears took control of Wall Street trading.
BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView
U.S. inflation print proves setback
Data from TradingView and Cointelegraph Markets Pro followed BTC/USD at $28,528 on Bitstamp. This is its lowest level since May 28.
Both had fallen with stock markets, ending the week in a noticeable downtrend — the S&P 500 lost 2.9% and the Nasdaq Composite lost 3.5%, respectively.
This was due to the shockingly high levels of inflation data from the United States. It turned out that things were not as they had been expected. Cointelegraph reported that the annual inflation rate was 8.6%. This is the highest level since December 1981.
Market commentators reacted and were firmly on the bearish side of future BTC price movements.
Crypto Tony, a popular Twitter account, stated that when Bitcoin drops to $22,000- $24,000 they will demand lower. Don’t be greedy when it comes.”
Filbfilb, the co-founder and chief executive of Decentrader’s trading suite, contrasted the current situation with the March 2020 COVID-19 collapse. He argued that this year’s slow bleed was worse than the “car crash” price drops of 2016, which briefly brought Bitcoin to $3600.
MicroStrategy CEO Michael Saylor stated that “Inflation isn’t peaked” and added that Bitcoin had not reached its peak. This was a hopeful perspective after the data print.
“In the current macro backdrop, it doesn’t really matter how many charts show confluence that is we are reaching historically high levels,” PlanC, a popular Twitter account countered.
“As long Bitcoin is correlated with risk on assets, I don’t see any significant trend reversal anytime quickly.”
BTC/USD would likely see its lowest weekly close since December 2020 if it ended the week at current levels, or below $29,450.
BTC/USD 1-week candle chart (Bitstamp). Source: TradingView
Doubts about rate increases emerge
Inflation-related rate increases will be the main focus of the week ahead.
Related: BTC price snaps longest losing streak in its history — 5 things you should know about Bitcoin this week
The Federal Reserve’s Federal Open Markets Committee minutes (FOMC), which are due for the meeting June 14-15 will give clues as to how aggressive policymakers intend to be in stemming price increases.
“I believe that the market will eventually realize that inflation isn’t going away soon, and that rates will remain relatively low,” Daan Crypto Trades tweeted.
The report added that gold could be an early indicator of the “new old” trend, by rising from its current trading channel.
“$GOLD could be the driving factor in such a shift. That is what I am closely watching. We’re still trying to bake in the bad elements right now,” a day-to-day post read.
1-day candle chart for XAU/USD Source: TradingViewcom. You should do your research before making any investment or trading decision.