CPI (The Consumer Price Index) data, which was much anticipated, was released yesterday, and it has been a wild week for the Bitcoin market. Although the CPI was lower than expected, which suggests that inflation has slowed, the market reaction was anything but steady. Although Bitcoin (BTC) was able to retake the $30,000 mark, the issue of whether it will keep rising or whether a correction is approaching continues to rise.
Will Bitcoin see new highs or a correction After CPI is Rated?
Although the report’s CPI rate of 5.0% was less than the 5.2% that many had predicted, Bitcoin’s recent price increase and momentum seem unimpressive. Although BTC’s climb may continue, the cryptocurrency is having trouble stabilizing above the $30,000 level.
The core CPI, which includes food and energy expenses, has climbed from the previous month despite the lower-than-expected CPI rate of 5.0%, suggesting that inflation may not be dropping as soon as anticipated.
In a recent newsletter, prominent crypto analyst Michael Van de Poppe pointed out the remarkable performance of Bitcoin compared to other assets. As a result, other cryptocurrencies in the industry have underperformed.
The BTC.D chart over a 2-day period has been highlighted by Van de Poppe as being at a crucial phase. If there is a good breakout and BTC enjoys a positive continuation after a retest of the range high, he says that Bitcoin’s strength might continue to rise. On the other side, if the market exceeds the range and then drops back into it, it can offer chances for alternative currencies to acquire traction.
in Bitcoin’s price between $28,400 and $28,800 might have a favorable effect on the cryptocurrency’s total price movement. As it was once a formidable barrier to cross but is now an important threshold for BTC, this specific zone may act as a strong support level.
At the time of writing, Bitcoin is trading at $29,950 and has dropped slightly by 0.8% over the last day due to sideways movement. BTC might restore its bullish momentum and hit a new yearly high, though, if it can weather a potential retreat into the $28,600 region.
On the other side, if BTC is unable to hold its position and breaks through this level, it may continue to retrace its path toward the $27,200 region. This level could be important since a strong recovery from it might support the consolidation of Bitcoin over $30,000.
Chart from TradingView.com; featured image from Unsplash.
Related Reading: | Bitcoin & Ethereum Prices Rise After Us CPI Falls Short Of Expectations |