Bitcoin price retests key support as Fed rate hike fears steal $27K
Bitcoin (BTC) traded back below $27,000 on May 19 as analysis flagged large-volume trades pressuring price.
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hitting lows of $26,380 on Bitstamp.
A modest recovery then took the pair to a range familiar from several days prior, this still in focus prior to the week’s final Wall Street open.
Downside overnight came courtesy of increasing market expectations of an interest rate hike by the United States Federal Reserve in June.
These came thanks to low jobless claims data for the week, with Fed officials adding a hawkish tone.
"On the one hand, inflation is too high, and we have not yet made sufficient progress on reducing it," a speech by board member Philip Jefferson at the 2023 International Insurance Forum in Washington, D.C., stated.
According to CME Group’s FedWatch Tool, the odds of the Fed pausing its hiking cycle next month, at one point over 95%, stood at just 62% on the day.
In a detailed breakdown of the events, monitoring resource Material Indicators showed owners of bid and ask liquidity placing trades to manipulate BTC price behavior on short timeframes.
“After chopping sideways, markets began to price in potential for another rate hike as the morning's Jobless Report and #FED speakers set the tone for that conversation ahead of #JPow's appearance, scheduled for Friday,” part of Twitter commentary summarized.
Material Indicators noted that BTC/USD performed a retest of the 100-day moving average (MA) — its third in the past seven days.
“After about 90 mins and a few nibbles at the sell wall, the roof was pulled. Shortly after that a new $36M block of bids was placed below local support and the melt up began,” it added.
In addition to the 100-day MA, the
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