Bitcoin price jumps above $64K: is the Fed finally turning crypto’s way?

The cryptocurrency market posted broad gains over the last 24 hours after the latest US Consumer Price Index (CPI) report showed inflation slowed more than economists had expected, boosting hopes that the Federal Reserve could begin easing monetary policy in the coming months.

Data released by the US Bureau of Labor Statistics showed annual inflation eased to 3.5% in June, down from 4.2% in May. 

The reading also came in below the market consensus forecast of 3.8%, marking the first decline in inflation in five months.

Meanwhile, core CPI, which excludes the more volatile food and energy categories, fell to 2.6%, beating expectations of 2.8%.

Falling energy prices help ease inflation

The decline in inflation was largely attributed to lower energy prices following a temporary ceasefire between the United States and Iran, which helped reduce pressure on global oil markets.

The softer inflation data strengthened expectations that the Federal Reserve may adopt a less restrictive monetary policy if price pressures continue to ease.

Investors are now looking ahead to Federal Reserve Chair Kevin Warsh's upcoming testimony before Congress, as well as the Federal Open Market Committee (FOMC) meeting later this month, for additional clues about the central bank's interest rate outlook.

The positive macroeconomic data sparked renewed buying across the cryptocurrency market.

Bitcoin BTC climbed above $64,000, gaining 3.3% over the past 24 hours. 

Other sectors of the crypto market, including meme coins and privacy-focused tokens, also recorded gains of roughly 3% to 4%, reflecting improving investor sentiment.

The market's reaction suggests traders are increasingly optimistic that lower inflation and potential interest rate cuts could provide a more supportive environment for digital assets.

Bitcoin price analysis: BTC targets 50-Day EMA after reclaiming $64K

Bitcoin (BTC) continued its recovery on Wednesday, trading around $64,770 after gaining nearly 4% in the previous session and closing above the key $64,000 resistance level.

The latest rally has improved short-term sentiment, but Bitcoin still faces significant technical hurdles before confirming a broader trend reversal.

Despite reclaiming the $64,000 level, Bitcoin continues to trade below three major Exponential Moving Averages (EMAs), indicating that the longer-term trend remains under bearish pressure. 

A decisive close above the 50-day EMA at $65,142 would strengthen the ongoing recovery.

Meanwhile, breaking above the 100-day ($68,524) and 200-day ($74,562) EMAs would provide stronger confirmation that bullish momentum is returning.

Momentum indicators suggest buying pressure is gradually building, even though the overall market structure remains cautious.

The Relative Strength Index (RSI) has climbed to 62, moving above the neutral 50 mark and signaling modest bullish momentum.

Meanwhile, the Moving Average Convergence Divergence (MACD) remains in positive territory, indicating that upward momentum is still intact. 

While the indicator does not yet confirm a major trend reversal, it suggests the recent recovery could continue and help limit downside risks.

Bitcoin's immediate support is located near $64,004, where buyers recently stepped in to defend prices. Holding above this level would help preserve the current recovery.

Bitcoin's recovery has gained momentum after reclaiming the $64,000 level, but bulls still face a critical technical test.

A daily close above the 50-day EMA would strengthen the case for additional gains, while failure to overcome this resistance could see BTC consolidate or retest support near $64,004 before attempting another breakout.