As the Fed’s inflation meeting pushed DXY to a 2-month high, Bitcoin prices rose slightly

Bitcoin (Bitcoin) Remained below $40,000 on June 17th because the surge in the U.S. dollar increased the downward pressure on the BTC price.

BTC/USD 1-hour candlestick chart (Bitstamp). Source: TradingView

BTC/USD rebounds to 38,000 USD

Data from Cointelegraph Markets Pro with Transaction view The trading price of BTC/USD on Thursday is about 39,300 US dollars.

During the Fed meeting the day before, the biggest cryptocurrency fell and Chairman Jerome Powell admitted that inflation may be higher than planned in the short term. As Cointelegraph Report, The Consumer Price Index (CPI) report in May showed that the inflation rate reached a 13-year high last month.

However, while traditionally beneficial to Bitcoin, Powell’s confidence in the long-term return of inflation to normal will ultimately boost the U.S. dollar more than Bitcoin.

Powell said in a subsequent speech: “Yes, they have stabilized and are now in a good position-it’s nice to see that they have gotten out of the low point of the pandemic.” Media comment Regarding inflation indicators.

“In our new framework, it is critical to ensure that long-term inflation expectations are anchored in line with our goals.”

The target is currently about 2%, and the Fed admits that interest rates sometimes exceed this threshold.

After the meeting, the U.S. dollar rose, and the U.S. dollar currency index (DXY) rose to a two-month high.

This is a typical friction provider for Bitcoin, and the tepid sentiment towards the prospect of the 2021 bull market continues to be further tested.

The dollar currency index (DXY) 1-day candlestick chart. Source: TradingView

Small futures gap provides possible targets

Nevertheless, the popular trader Crypto Ed famous The positive impact of the rebound of BTC/USD from the intraday low from the support level of $38,000.

related: Pantera CEO: The “panic” in the crypto market is fading, and now is the time to buy

“Let us not forget the possible extension of filling the CME gap,” he added when commenting on the lows, adding that the futures gap-another most popular short-term price influence factor-is $37,000.

Meanwhile, trader Peter Brandt (Peter Brandt) highlight Many gaps on BTC/USD are still unfilled, and he added that he believes that not all gaps must be filled.

The 1st chart of CME Bitcoin futures shows the gap on June 13. Source: TradingView

Previously, Cointelegraph Report During this long period of low prices, the habits of Bitcoin investors have changed.

The data shows that holders of tokens have a longer time to store tokens, even those who bought in the first few months of the bull market still promise not to sell.