Bitcoin is navigating a period of high volatility as traders brace for insights from Federal Reserve Chair Jerome Powell. Recent data suggests that $65,000 is a pivotal price level for BTC, which could dictate the cryptocurrency's path towards new all-time highs.

On May 14, Bitcoin experienced a sharp dip, reaching a low near $61,000 as the latest United States inflation data was released. Data from Cointelegraph Markets Pro and TradingView captured the ongoing choppy price conditions as the market opened on Wall Street.

The April Producer Price Index (PPI) matched expectations at 2.2%, marking the third consecutive monthly increase. An official press release from the U.S. Bureau of Labor Statistics noted that prices for final demand, excluding food, energy, and trade services, rose by 3.1% over the past 12 months—the largest increase since April 2023, which saw a 3.4% rise.

Despite avoiding a significant PPI miss, the crypto market remains wary of the implications for risk assets. “PPI inflation is now up for three straight months for the first time since April 2022,” noted trading resource The Kobeissi Letter on X (formerly Twitter), highlighting ongoing speculation about the Federal Reserve's potential interest rate reductions.

Jerome Powell's upcoming speech at 10 AM Eastern Time is highly anticipated, with markets closely watching for any hints on the Fed's policy direction. Trading firm QCP Capital expects Powell’s remarks to be cautiously crafted, likely resulting in a muted market reaction. However, they noted that the May 15 release of the Consumer Price Index (CPI) could be the catalyst that finally drives market movement.

Bitcoin traders are currently experiencing a sense of indecision as the price remains rangebound. Significant liquidity blocks are returning to the order book, positioning around the spot price ahead of Powell's speech and the macroeconomic data release.

In his latest analysis, popular trader Jelle identified three conditions that have now been met for a potential BTC upside. These include a successful retest of the 100-day exponential moving average (EMA), which currently sits at $60,409, acting as support. Additionally, the moving average convergence/divergence (MACD) indicator has turned bullish on daily timeframes.

Jelle emphasized that $65,000 is a critical "line in the sand" for Bitcoin's bullish scenario to materialize. Breaking through this level could pave the way for significant price appreciation and potentially new all-time highs.

As the market awaits further guidance from Powell's speech and the upcoming CPI data, Bitcoin's ability to maintain support levels and break past $65,000 will be key indicators of its near-term trajectory.