Pre-halving volatility continued to dominate the crypto market on Tuesday as prices reversed course from Monday’s spike, leading to Bitcoin (BTC) plunging below $69,000 while altcoins faced significant declines.
Stocks also trended lower for most of the trading day, with investors waiting on the sidelines ahead of tomorrow’s Consumer Price Index (CPI) report, which is expected to provide insights into the potential trajectory of U.S. interest rates. Currently, the market anticipates a 57% chance of a rate cut in June and a 74% likelihood of a cut in July.
Despite this, a rally into the close managed to lift the S&P and Nasdaq out of negative territory, while the Dow finished flat.
Data from TradingView indicates that Bitcoin has been on a downtrend since reaching its peak at $72,800 on Monday, experiencing a 6.82% decline to reach a low of $68,200 on Tuesday afternoon. However, dip buyers subsequently pushed it back above $69,000, and at the time of writing, BTC trades at $69,030, marking a 3.75% decline over the past 24 hours.
Market analyst Bloodgood commented on the current macro environment, describing it as oscillating between hope for a perfect soft landing and fears of inflation, with sentiment appearing to lean towards the bearish side recently.
He highlighted the significance of tomorrow’s CPI release and cautioned about potential surprises regarding inflation, advising caution, especially for those with leveraged positions.
Regarding Bitcoin, Bloodgood noted a lot of indecision lately but expressed confidence in the bulls’ control due to the upward drift and higher lows being printed. However, he emphasized the challenge at the current All-Time-High, slightly above $73,700.
Bloodgood also touched on the unusual aspects of this bull market cycle, including the attention garnered by memecoins and the ongoing rise of gold. He urged traders to focus on the current chart rather than relying on fractal patterns or previous cycles to predict future movements.
In conclusion, Bloodgood suggested that capital might rotate towards technically impressive projects later in the cycle, despite the current dominance of memecoins.
According to Michaël van de Poppe, founder of MN Trading, Bitcoin is likely to trade sideways and consolidate in the near term until sometime after the halving.
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