BTC price risks $27K loss as Bitcoin trend lines brew ‘bullish cross’
The price of Bitcoin (BTC) faces the potential of a $27,000 loss as it forms a "bullish cross" in its trend lines.
David Becker 
The price of Bitcoin (BTC) fell to $30,008 and appeared to be heading toward $27,000 after the Wall Street opening on May 11, with a lack of bullish momentum.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
BTC price “rolls over” after brief recovery
Even though new United States macroeconomic data provided some positive signs, BTC struggled to maintain its recent recovery. Popular trader Daan Crypto Trades noted that the price had briefly rebounded but then reversed course. The cryptocurrency was still trading near its recent lows, and Daan Crypto Trades believed that shorts weren't a great risk-reward opportunity until it broke out of this range. The bulls would need to show strength by retaking the daily open for a potential reversal.
Market participants continued to prepare for downside targets, with many focusing on the $25,000 area. Some traders remained short, waiting for a break below $27,000 before shorting.
BTC/USD annotated chart. Source: Crypto Tony/Twitter
One bullish voice on the day was trader and analyst Moustache, who focused on longer-term price trends. He pointed out that two moving averages, the 20-week and 200-week, were about to stage a "golden cross," a positive technical indicator that hadn't occurred since September 2022.
BTC/USD annotated chart. Source: Moustache/Twitter
U.S. data joins CPI, dealing fresh blow to inflation
In terms of macroeconomic data, positive U.S. Producer Price Index (PPI) and unemployment data provided some relief to crypto investors. Jobless claims increased on the day, while PPI aligned with expectations of declining inflation. This data, along with signals from the Consumer Price Index (CPI), suggested that the chances of further interest rate hikes in June were diminishing.
Fed target rate probabilities chart. Source: CME Group
The latest information from CME Group's FedWatch Tool indicated that market consensus was leaning towards a pause in rate hikes in June, with a probability of over 96%.
