Bitcoin price prediction has turned bearish, as BTC has fallen below an upward channel. If BTC exits this channel, it is likely to fall to $16,775.
BTC fell further in the US session after a lower-than-expected US Flash Services PMI on Friday disappointed market participants. Traders appear to be anticipating further rate hikes from the Federal Reserve and the European Central Bank.
Price movement is influenced by economic events
According to recent data, wholesale product prices, excluding food and energy, have decreased.
This trend could be attributed to improved supply chains and lower demand as a result of higher borrowing rates. It backs up economists’ claims that commodity prices have begun to fall.
Inflation was also slowing according to the producer price index (PPI). The 0.6% increase in the cost of final-demand items, excluding food, energy, and trade services, was reportedly responsible for the increase in PPI.
The PPI increased by 0.2% in October, less than the 0.4% consensus estimate, and annual prices fell from 8.4% to 8.0%.
US PPI data due later today may give us a hint on the extent to the moderation of goods inflation in next week’s CPI report. PPI came in soft last month at 8.0% yoy. Median survey estimate for today is 7.2% pic.twitter.com/oCL3AizNU7
— Valerie Tytel (@ValerieTytel) December 9, 2022
The Flash US PMI Composite Output Index was 44.6 in December, down from 46.4 in November, indicating the joint-fastest drop in business activity in over two and a half years.
US Manufacturing PMI — fell to 46.2 in December 2022 from 47.7 in November, well below market forecasts of 47.7. Preliminary estimates pointed to the biggest contraction in factory activity since May 2020, driven by subdued demand and a faster fall in output. pic.twitter.com/5qdS0pFyiT
— US vs HERD (@USvsHERD) December 16, 2022
The cryptocurrency market appears to be ignoring worse-than-expected economic events, continuing to fall in response to Fed and ECB rate hike decisions.
To read our blog on “Genesis, a cryptocurrency broker, owes Gemini’s clients $900 million,” click here
