TechFlow news: Bitcoin price dropped from nearly $70,000 to $63,000 this month, primarily due to miner selling, profit-taking by investors, and outflows from U.S. spot ETFs.
Bitcoin has formed a double top pattern, a bearish technical analysis formation. Markus Thielen, founder of 10x Research, said if the pattern holds, prices could fall to $50,000 or even $45,000.
Although the U.S. election and CPI data may bring positive momentum, Thielen believes a larger correction is still possible. However, the May personal consumption expenditures (PCE) price index is expected to show the slowest growth in three years, which could support a Fed rate cut in September and provide tailwinds for risk assets like Bitcoin.
Greg Magadini, Director of Derivatives at Amberdata, noted that recent strong economic data has driven up bond yields and weighed on precious metals, hindering cryptocurrency performance. This week features multiple Federal Reserve speeches, GDP data release, and most importantly, Friday's PCE data. Economists expect the PCE price index to remain flat, with core PCE rising only 0.1%.
