- This week highlights important events that could impact the price of BTC.
- BTC has lost some gains from its previous trading session.
Bitcoin [BTC] has experienced volatile price movements in recent days, illustrated by a notable drop of more than 3% on May 10, which dropped its value to $60,000.
However, there are indications that these choppy swings may persist, largely driven by the upcoming Federal Reserve meetings.
Bitcoin investors await the results of BLS events
The upcoming events planned by the US Bureau of Labor Statistics (BLS) this week are notable for investors because of their potential impact on investment decisions.
Historical data suggests that Federal Reserve (Fed) announcements have influenced Bitcoin prices in the past.
That’s why Fed Chairman Jerome Powell’s upcoming speech, scheduled for May 14, is particularly important.
The BLS schedule indicates two key events: the Producer Price Index (PPI) today and the Consumer Price Index (CPI) on May 15.
The PPI measures changes in the prices that producers receive for goods and services, while the CPI tracks changes in the prices that consumers pay for those same goods and services.
Both indices serve as key economic indicators that investors rely on to gauge the state of the economy.
Additionally, later in the week the BLS website indicates an upcoming event focusing on employment claims.
These macroeconomic events are poised to impact Bitcoin’s price movements as investors keep a close eye on them to inform their investment strategies.
What to expect from Bitcoin price movements
AMBCrypto’s analysis of Bitcoin’s price trend on a daily time chart indicated a sluggish performance in recent weeks.
On May 10, the price experienced a significant drop from over $63,000 to around $60,000, reflecting a loss of over 3%.
While Bitcoin tried to recover since May 11, it could only reach around $62,900. At the time of writing, the stock was trading around $62,000, down more than 1%.
Source: TradingView
Examination of the stochastic indicator suggested the possibility of a further decline as there was still crossover.
However, based on the recent price action, the $60,000 level appears to be a strong support region. Should the price fall further, around $57,000 could act as a new support level to prevent further decline.
Possible increase in BTC volume expected
The volume metric for Bitcoin could experience increased activity if the price starts to decline.
The chart showed that during the previous trading session, when the Bitcoin price rose, the volume was around $25 billion.
Read Bitcoin’s [BTC] Price forecast 2024-25
However, at the time of writing, the volume has already increased to almost $28 billion as the price of BTC has fallen.
This increase in volume indicates increased trading activity, potentially signaling greater selling pressure if the price continues to decline.
Source: Santiment