Bitcoin has been consistently trading above $26,000 for some time. However, renowned analytics firm Glassnode’s co-founder, Yann Allemann, predicts that it may soon surpass this level and surge to $30,000. This forecast is based on the recent U.S. Consumer Price Index (CPI) data and the overall positive shift in market sentiment.
The CPI data revealed a 0.6% increase in August primarily driven by rising gasoline prices. This accounted for over half of the year-on-year inflation rate, which reached 3.7%. Furthermore, the core CPI, excluding food and energy costs, experienced a 0.3% rise.
It is worth noting that this inflation data emerges just one week prior to the Federal Reserve’s upcoming policy meeting where interest rates are expected to remain unchanged. Despite high levels of inflation, immediate intervention from the Fed seems unlikely at this point.
Allemann believes that such an environment could actually work favorably for Bitcoin as it enhances its appeal as a hedge against inflationary pressures. He also draws attention to the Risk Signal indicating increased market optimism with its decline into the 60s.
Bitcoin Faces Resistance Before $30K
According to Allemann, Bitcoin is on the verge of breaking free from its recent range and making a push towards the $30,000 threshold. However, he acknowledges that there are some obstacles ahead in the form of resistance levels and profit-taking pressure.
Specifically, he points out the $27,400 and $28,200 levels as potential hurdles that need to be crossed before Bitcoin can reach the psychological barrier of $30,000. Allemann remains optimistic about overcoming these minor roadblocks with prevailing bullish momentum.
Data from CoinGecko reveals that Bitcoin currently commands a market cap exceeding $514 billion, accompanied by a 24-hour trading volume of around $8.16 billion. These numbers underscore the significant financial interests involved in the cryptocurrency market.
Bitcoin has demonstrated signs of resilience lately as it recovered from its September low point of $23,800. At present, it is trading at approximately $26,500—an decrease of more than 7% over the past month.
In the last 24 hours, Bitcoin has experienced a trading volume of $11.66B USD and a decrease of -0.37%. Additionally, it currently circulates with a supply of 19.49M.