Bitcoin (BTC) fell to a two-week low on June 11 as weekly trading on Wall Street ended with bears in control.
BTC/USD 1 Hour Candlestick Chart (Bitstamp). Source: TradingView
US inflationary pressures are proving to be a setback
Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it touched $28,528 on Bitstamp, its lowest level since May 28.
The pair fell on June 10th in tandem with equity markets, which ended the week notably lower – the S&P 500 and Nasdaq Composite down 2.9% and 3.5%, respectively.
The background was surprisingly high inflation data from the United States, which contrary to expectations turned for the worst. As Cointelegraph reported, annual inflation hit 8.6%, the highest since December 1981.
In response, market commentators have therefore been firmly on the bearish side when discussing future BTC price action.
“If we go down to $22,000-$24,000 in bitcoin, they will demand lower prices. Don’t be too greedy when the time comes,” popular Twitter account Crypto Tony told his followers.
Meanwhile, Filbfilb, co-founder of trading suite Decentrader, contrasted the current environment with the COVID-19 crash of March 2020. This year’s slow bleed, he argued, was more painful, if anything, than the “car crash” price drop of the time that briefly took Bitcoin to $3,600.
“Inflation hasn’t peaked yet, and neither has bitcoin,” MicroStrategy CEO Michael Saylor said after the data push at a more hopeful angle.
“With the current macro backdrop, it doesn’t matter how many charts show confluence that we are reaching historically oversold levels,” countered popular Twitter account PlanC.
“As long as bitcoin remains correlated to asset risk, I don’t see a significant trend reversal in the near term.”
If it ended the week at current levels or below $29,450, BTC/USD would face its lowest weekly close since December 2020.
BTC/USD 1-week candlestick chart (Bitstamp). Source: TradingView
Doubts about interest rate hikes arise
Looking ahead, the upcoming decisions on rate hikes in response to inflation are likely to be the main focus for the week ahead.
Related: BTC price is on its longest losing streak in history – 5 things to know about Bitcoin this week
Minutes of the Federal Reserve’s Federal Open Markets Committee (FOMC), due for its June 14-15 meeting, will provide clues as to how aggressive policymakers plan to be in trying to contain price increases.
“I think at some point the market will realize that inflation is not going away any time soon and that interest rates will still be relatively low,” argued Twitter account Daan Crypto Trades.
It added that gold could provide an early clue to this “new old” trend by moving down from its current trading channel.
“$GOLD could be the leading factor in such a shift. Watch that closely. At the moment we are still in the process of baking in the bad factors, ”says a post on the day.
XAU/USD 1-day candlestick chart. Source: TradingView
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