Following the latest Personal Consumption Expenditures (PCE) data, the Federal Reserve’s preferred inflation metric, a veteran trader has pointed out the two main scenarios for Bitcoin BTC/USD.

What Happened: Crypto trader EmperorBTC provided an update on the current state of Bitcoin’s price action: “No changes since last update — just my belief has solidified that we continue chopping for a few weeks,” he tweeted on Friday.

Bitcoin Price Update

No changes since last udpate – just my belief has solidified that we continue chopping for a few weeks.

Scenario 1: (main)
– We continue upwards and move level to level not giving sideliners an entry
– Price has to move quickly over the weekend and into… pic.twitter.com/JbnliOqwDN

— Emperor👑 (@EmperorBTC) May 31, 2024

The trader sees two main scenarios.

Scenario 1: An Upward Movement

In the first scenario, which EmperorBTC views as the main possibility, Bitcoin continues its upward trend but in a manner that precludes easy entries for sidelined investors.

This scenario relies on price action moving quickly over the weekend and into the next week. This would result in Bitcoin appreciating steadily, making it difficult for those who have not yet entered the market to find opportune moments to buy in at lower prices.

Scenario 2: A Quick Downward Wick

The second scenario involves a brief, sharp dip in Bitcoin’s price to the $65,000-$66,000 range, followed by a rapid recovery.

“Wick down ~$65-66,000. Quick recovery,” EmperorBTC noted. This scenario becomes more likely if Bitcoin continues to trade sideways, as built-up positions on either side of the trading range could trigger a swift downward move before rebounding.

Read Also: What Celeb Meme Coins Could Mean For Bitcoin’s Price

Why It Matters: EmperorBTC's insights offer a strategic perspective for traders and investors navigating Bitcoin's current market conditions. The expectation of weeks of consolidation suggests a period of preparation for the next significant move.

“In my opinion we see weeks of consolidation in a big range then up,” he concluded, indicating a longer-term bullish outlook following the consolidation phase.

For traders, understanding these potential scenarios can aid in planning entry and exit points. The main scenario suggests a steady upward movement, favoring those already in the market, while the second scenario presents a buying opportunity for those prepared to act quickly on a dip.

What's Next: The influence of Bitcoin as an institutional asset is expected to be thoroughly explored at Benzinga's upcoming Future of Digital Assets event on Nov. 19.

Read Next: Bitcoin Spot ETFs See $48M Inflow As Ethereum Spot ETF Trading Draws Nearer

This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Image: Shutterstock