© Reuters
Investing.com – After weakening on Monday, the remained stable yesterday, and the short-term trend remains uncertain on Wednesday morning, as investors anxiously await the release of US inflation data for April later Today.
Remember that investors are taking into account a 78.8% probability of a pause in the Fed’s rate hike for the next meeting in June, a probability that is down sharply from more than 95% following at last week’s Fed meeting, where the central bank suggested it would take a break next month.
Investors indeed began to doubt the prospect of a Fed pause following last Friday’s strong NFP report, and have continued to doubt that prospect since the start of the week, which explains the downside pressure that weighed on Bitcoin (in addition to concerns about network congestion issues).
Against this backdrop, Wednesday’s US CPI data will be watched closely, as better-than-expected numbers will likely lower the odds of a Fed pause even further, along with inflation numbers. lower than expected could reinforce the belief that the Fed is done with raising rates for now.
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In the first case, we should expect a stronger fall in Bitcoin, while in the second, BTC should rise.
Technical thresholds to watch on Bitcoin
From a chart perspective, the next major support for Bitcoin is the $27,000/$27,500 area. Then the 100-day moving average, currently around $26,000, will come into play, before the psychological threshold of $25,000.
On the upside, the $28,000 threshold is an immediate hurdle, before the 50-day moving average currently located at $28,550, then the psychological thresholds of $29,000 and $30,000, before this year’s high near $31,000.