Required containers
- Technically oversold conditions may slow down the pace of the decline, but the broader market remains bearish.
- The structure will remain bearish unless BTC can recapture the $64,000 region and rebuild higher levels above the moving keys.
BTC Extends Losses Ahead of Key US Inflation Data Bitcoin (BTC) continued its slide on Wednesday, trading below $61,500 as political tensions in the Middle East rekindled and continued institutional selling eased risk sentiment.
Investors are also preparing for the release of US Consumer Price Index (CPI) data for May, which will have a major impact on expectations of the Federal Reserve’s policy.
The new conflict in the Middle East keeps the dangerous situation under control
Political concerns grew after the United States took what it called self-defense against Iran following the downing of a US Apache helicopter in the Strait of Hormuz.
Iran’s Islamic Revolutionary Guard Corps (IRGC) has responded by saying it has targeted an air base in Jordan where US troops are stationed, as well as the territories of Kuwait and Bahrain, warning of further escalation if US actions continue.
Market participants are eagerly watching the upcoming US rate hike. Economists expect the May CPI report to show further increases in consumer prices, partly due to rising energy costs linked to the Middle East crisis.
If inflation comes in hotter than expected, it could bolster expectations that the Federal Reserve will maintain a hawkish stance and keep interest rates low for a long time.
Higher leverage makes yield-producing investments look attractive relative to riskier ones, which could increase Bitcoin’s upside.
Institutional demand remains weak. According to CoinGlass, List of US Bitcoin ETFs posted $77.44 million in revenue Tuesday, following a $91.37 million exit from earlier in the week.
This withdrawal increases the risk of increasing weekly outflows from Bitcoin ETFs, meaning that many investors remain cautious amid economic uncertainty and global risks.
Bitcoin technical outlook: Bears retain control
The 4-hour BTC/USD chart is bearish and useful as Bitcoin maintains a bullish near-term trend.
The price remains below all three major moving averages, while the upward trend near $73,004 has turned into resistance, reinforcing the view that the upward trend in the center has been broken.
The RSI close to 38 indicates a potential bearish trend, but does not indicate a definitive change.
The MACD remains in negative territory, although the downside appears to be limited, increasing the risk of consolidation instead of a quick recovery.
If the bulls regain control, immediate resistance is seen at the level of $64,004, and the $72,037 zone is also seen as a strong point.
There are no immediately recognizable support groups below the current price in this setup, leaving BTC vulnerable to further volatility if the sell-off continues.
