Fed Rate Hike Odds Plummet as Inflation Data Boosts Risk Assets

The US Federal Reserve's chances of raising interest rates in September have decreased to just 32.1% following recent inflation data, which has improved conditions for risk assets and could drive up Bitcoin prices.

The Consumer Price Index (CPI) was in line with expectations, while the Producer Price Index (PPI) came in cooler-than-expected, leading markets to price in lower odds of a Fed rate hike. This shift is a positive development for Bitcoin, which has been trading within its Bollinger bands on the 4-hour chart.

The upper resistance level for BTC is currently at $64,713.11, with lower support at $63,042.71. The EMA50 (Exponential Moving Average 50) is capping upside as resistance, while the EMA200 is nearby, holding a neutral position on the RSI(14). However, the MACD (Moving Average Convergence Divergence) indicates a bearish death cross, setting the stage for further price drops.