# NEW

Crypto Pre-drink: May 13, 2024

Crypto Pre-drink

KEYTAKEAWAYS

  1. Bitcoin Price Movement: Despite a 15% correction post-halving, Bitcoin had a seven-month streak of price increases, with fluctuations between $60,000 and $65,000 anticipated short-term.
  2. Market Influence Factors: U.S. inflation rising to 3.5% affected market expectations for interest rates, leading to declines influenced by news and potential market manipulation.
  3. Ethereum Stability: Ethereum showed minimal weekend volatility, operating below a descending trendline with support around $2,800 and resistance at $3,000, awaiting Bitcoin stabilization for a rebound.

CONTENT

In the Crypto Pre-drink, we serve up a daily shot of the hottest crypto news and market insights to fuel your investment decisions.

 


BITCOIN HALVING AND MARKET REACTION

 

Last month, Bitcoin underwent its scheduled halving event, resulting in a 15% price correction. Despite this, Bitcoin had experienced a seven-month streak of price increases, a phenomenon last observed in 2012. Post-halving downturns are common, but relying solely on this for future predictions is impractical. Currently, market movements are primarily influenced by news.

 

INFLATION AND MARKET MANIPULATION

 

The market is information-driven. The U.S. one-year inflation rate for May surged from 3.2% to 3.5%, impacting expectations for interest rate cuts and subsequently causing a market decline. This suggests that market manipulators prefer not to see prices rise at this time and use various news events to depress prices, similar to the influence of previous geopolitical news.

 

KEY ECONOMIC INDICATORS

 

Market participants are now focusing on the Producer Price Index (PPI) on May 14 and the Consumer Price Index (CPI) on May 15, with the CPI being particularly significant. Current market expectations are below previous values, indicating potential opportunities as actual CPI data is critical.

 

 

In the short term, fluctuations between $60,000 and $65,000 are anticipated, which may cause less committed investors to exit the market. The $52,000 level remains a strong support for Bitcoin, and news developments will continue to exert pressure on the cryptocurrency market. After a brief adjustment, Bitcoin is expected to continue fluctuating between $66,000 and $70,000, as market volatility is likely to decrease and altcoins are expected to show strong performance.

 

ETHEREUM MARKET UPDATE

 

Similarly, over the weekend, Ethereum experienced minimal volatility, with daily fluctuations around 1%. In the absence of U.S. market guidance, major market players were cautious. The trend for Ethereum remains stable, consistently operating below the descending trendline. Trading along this trendline has yielded stable returns, with the current price near its previous low, providing some support. Short-term rebound opportunities are worth watching. Like many altcoins, Ethereum has seen significant corrections and is awaiting Bitcoin stabilization to resume market-making activities. Immediate support levels are at $2,820 and $2,800, while resistance levels are at $3,000 and $3,100.

 

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DISCLAIMER

CoinRank is not a certified investment, legal, or tax advisor, nor is it a broker or dealer. All content, including opinions and analyses, is based on independent research and experiences of our team, intended for educational purposes only. It should not be considered as solicitation or recommendation for any investment decisions. We encourage you to conduct your own research prior to investing.

 

We strive for accuracy in our content, but occasional errors may occur. Importantly, our information should not be seen as licensed financial advice or a substitute for consultation with certified professionals. CoinRank does not endorse specific financial products or strategies.


WRITER’S INTRO

CoinRank

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