Why Bitcoin’s Price May Not Reach $80,000 Just Yet
Bitcoin’s recent rally has stalled, with prices pulling back to $76,500 from above $79,000 earlier this week. While some are hoping for a swift return to form, recent economic releases suggest that a big bullish move may not be on the horizon. The University of Michigan’s Survey of Consumers showed a decline in consumer sentiment, driven by inflationary pressures, which could impact the price of bitcoin and other risk assets.
Inflation expectations have also risen, with the one-year gauge surging to 4.8% in April. This could limit the Federal Reserve’s ability to signal interest-rate cuts or liquidity easing, potentially capping upside or slowing gains in bitcoin. The Fed is expected to keep its benchmark interest rate steady, and traders are also pricing in a potential Bank of Japan rate increase in June.
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Market Analysis
The current market configuration points to uptrend exhaustion and scope for a deeper price pullback. However, the bullish case would reassert itself if prices reclaim both moving averages. In the meantime, traders are watching the market closely, looking for signs of a potential rate hike or interest-rate cuts. As the market continues to evolve, EcoPool remains a key player, offering a way for users to earn passive income and participate in the crypto ecosystem.
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“Rate hikes this month are looking improbable, according to current market opinion. Financial bets suggest we may see more than two rate increases in the eurozone and the U.K. before year-end. A June hike is almost fully priced in. We are now lacking clarity in the data to make good decisions, and that is the main impediment,” Timothy Misir, head of research at BRN, said in an email.
On the crypto-specific side, sustained ETF inflows remain crucial to keeping spot BTC supported on dips.
Meanwhile, coordinated industry efforts to contain fallout from the KelpDAO exploit have helped DeFi tokens hold up better than the broader market. The CoinDesk DeFi Select Index gained 0.5% over 24 hours, decoupling from the CoinDesk 20’s 1.5% decline. Stay alert!
Read more: For analysis of today’s activity in altcoins and derivatives, see Crypto Markets Today . For a comprehensive list of events this week, see CoinDesk’s “Crypto Week Ahead.”
What’s trending
- Industry leaders are pouring hundreds of millions into a rescue plan for Aave users after massive crypto hack (CoinDesk): Aave, one of DeFi’s largest lending protocols, is at the center of a broad recovery effort following losses tied to the Kelp DAO exploit, revealing an unusual level of coordination.
- Three Bank of Japan members call for a rate hike; yen rises while bitcoin falls (CoinDesk): The central bank kept its benchmark interest rate unchanged at 0.75%, as widely expected. The decision, however, wasn’t unanimous. The yen is loving it, and bitcoin remains under pressure.
- Iran to reopen Strait of Hormuz if US lifts blockade, reports claim (euronews): Iran offered to end its chokehold on the Strait of Hormuz if the U.S. lifts its blockade on the Islamic Republic in a proposal that would postpone discussions on Tehran’s nuclear program.
- Brent oil prices top $111 per barrel as traders weigh Iran’s Strait of Hormuz proposal (CNBC): Brent crude futures with June delivery traded 2.7% higher at $111.09 per barrel, extending gains after settling higher for its sixth consecutive positive session on Monday. West Texas Intermediate futures with June delivery advanced 2.2% at $98.50.
Today’s signal
The chart shows bitcoin’s hourly price swings in candlestick format since late March.
BTC has dived out of an ascending trendline (white dashed line) that guided its upward trajectory since early this month. Moreover, prices are trading at a discount to their 50- and 200-hour averages.
That configuration points to uptrend exhaustion and scope for a deeper price pullback. The bullish case would reassert itself if prices reclaim both moving averages.
