The Bitcoin (BTC) rally continues to gain momentum, reaching new highs near $67,900. This surge comes amidst a wave of mixed economic signals in the US, with inflation showing signs of moderation while economic activity sputters.

The Plot Thickens: Inflation & Fed Policy

The Federal Reserve's preferred inflation gauge, the Core PCE Price Index, rose slightly in April, but at a slower pace than the previous month. This could signal a potential turning point in the Fed's fight against inflation, raising hopes of a rate cut by September. However, consistent readings are crucial to solidify this possibility.

Adding to the intrigue is the recent Chicago PMI data, which fell short of expectations, indicating a slowdown in manufacturing. This mixed bag of economic data paints a complex picture: inflation might be cooling, but so is economic activity.

This is where Bitcoin steps in. With the prospect of a rate cut becoming more realistic, the US dollar weakens, making Bitcoin a more attractive investment. This, in turn, fuels the current Bitcoin price rally.

Disappointing GDP Fans the Flames

The lackluster US GDP figures further weakened the dollar, adding fuel to the Bitcoin fire. Investors, anticipating a potential rate cut later this year, are turning to Bitcoin as a hedge against a weakening dollar.

Key players in the Fed are offering conflicting signals. While some, like Chicago Fed President Austan Goolsbee, remain concerned about inflation, others, like New York Fed President John Williams, are optimistic about inflation easing later in the year.

The data dump continues with US weekly Initial Jobless Claims rising slightly. This, combined with the anticipation of a rate cut, is making Bitcoin even more appealing.

Sentiment Swings in the Spot Bitcoin ETF Market

The Spot Bitcoin ETF market reflects the mixed investor sentiment surrounding Bitcoin. While Blackrock's iShares and Bitwise saw inflows, ArkShares witnessed a significant withdrawal, indicating potential shifts in investor confidence.

The Verdict: A Precarious Balance

Bitcoin is currently teetering on a pivot point of $68,100. A decisive break above this level could trigger a bullish run, targeting resistance levels at $68,800 and beyond. However, a drop below $67,500 could signal a bearish shift.

Technical indicators like the RSI remain neutral, further amplifying the uncertainty. The 50-day EMA, however, aligns with the pivot point, suggesting this level as a critical support zone.

Only time will tell if Bitcoin can conquer the $68,800 resistance and embark on a bullish run. Stay tuned for the next chapter in this ever-evolving saga!