Bitcoin price returns to $60,000 as markets await CPI impact – 5 things to watch this week

As reported by Cointelegraph: Bitcoin ( BTC ) started the new week in familiar but cautious territory, holding precariously at support around $60,000 as market sentiment fluctuated between bullish and bearish. BTC price action remains within a tight trading range, leaving the market speculating on potential catalysts for significant changes.

  BTC/USD 1 hourly chart. Source: TradingView

Cryptocurrency markets could see significant volatility this week as U.S. macroeconomic data coincides with comments from Federal Reserve Chairman Jerome Powell. These factors could trigger a sharp reaction in risk assets.

  BTC/USD chart. Source: Mark Cullen/X

Traders are keeping a close eye on what levels may be tested next, especially within the buying liquidity range below $50,000 - which speculators believe could be a candidate for a long-term market bottom. However, on the shorter time frames, BTC seems more inclined to clear liquidity on the upside.

  The BTC/USD chart shows a bullish support band. Source: Daan Crypto Trades/X

While this week's close was nearly unrecognizable, it shows that Bitcoin ( BTC ) is fairly stable within its known territory. BTC regained $60,000 on May 3 and has held firm ever since. For many, this particular level marks a critical threshold for a bull market.

  BTC liquidation heat map (screenshot). Source: CoinGlass

Additionally, market sentiment is largely focused on these key macroeconomic developments in the United States. Specifically, the upcoming Consumer Price Index (CPI) data could have a significant impact on the inflation debate and interest rate cut hopes, which could impact Bitcoin’s price action.

  Probability of the Fed's target rate as of May 13 (screenshot). Source: CME Group

On-chain data also shows that long-term holders are capitalizing on the current bull run, increasing BTC exposure from previous distribution levels. Furthermore, funding rates for crypto derivatives remain neutral, suggesting that diverse market conditions may return soon.

  Bitcoin LTH supply ownership. Source: Maartunn/X

Meanwhile, the Crypto Fear Greed Index, which measures market sentiment, has fluctuated across states, indicating a level of uncertainty and hesitancy among cryptocurrency traders.

  Cryptocurrency Fear and Greed Index (screenshot). Source: Alternative.me