Bitcoin (BTC) spotted a key resistance near $25,000 on March 14 as the market awaits key economic data from the US.
Expect CPI to Bring Bitcoin “Consolidation”
Cointelegraph Markets Pro and TradingView showed BTC/USD hitting a monthly high of $24,917 overnight on Bitstamp.
The pair continues to perform well after the crypto market surged in the aftermath of multiple US bank shutdowns.
Now, when it comes to short-term BTC price action, all eyes were briefly on the February Consumer Price Index (CPI) print.
A classic cryptocurrency volatility catalyst in its own right, last month the CPI fell to An undesirable slowdown in inflation. This raised concerns that the Federal Reserve would keep interest rates higher.
But with the banking crisis overshadowing the inflation debate, risky assets have had little time to worry. Expectations were already being expressed that day that the Fed would abandon rate hikes altogether, regardless of CPI trends.
Cointelegraph contributor Michael van de Poppe, founder and CEO of trading firm Eight, said: Said twitter followers.
“Preferably we should see a period of consolidation (today’s CPI day) before continuing. If the market sweeps at the $25.2k high, be bearish. div and fallback, I’m at $23,000 I’m looking for a short to.”
Material Indicators, an on-chain monitoring resource, pointed out that order book composition could change significantly thanks to CPI.
He warned that if the data outperformed expectations, the bidding support could “lag” and pave the way for a deeper correction in BTC price.
“Asia may demand liquidity ahead of the consumer price index report, paving the way for volatility.” commented Binance BTC/USD pair movement.
“If the CPI is overheating, we expect support to be carpeted. If it’s cold and another bank doesn’t come down before lunch, we’ll do a bigger short squeeze.”
An accompanying chart by co-founder Keith Allan showed $23,600 and $25,000 as key areas of bid and ask liquidity, respectively.
Material Indicators added that Bitcoin needs to deliver multiple weekly closings above its 200-week moving average (WMA) for the overall rally to take a foot.
“A full candle over 200 WMA is required to consider a breakout,” he confirmed.
CPI: “manufactured” or “in some way”?
A weaker-than-expected CPI will make it more likely that the Fed will postpone further rate hikes and ease financial conditions.
RELATED: Fed Launches ‘Stealth QE’ — 5 Things You Need To Know About Bitcoin This Week
US President Joe Biden appeared last week to have no concerns that inflation was on the right track, even before the banking crisis fully broke out.
Biden at White House press conference Said He said, “I’m optimistic about next week’s consumer price index. Hopefully, we’ll be in solid shape.”
However, there was suspicion among analysts. The popular trader’s xTrends suggests that an unexpected drop in the CPI would be most beneficial to the Fed, which is currently in a pinch due to recent events.
“I believe tomorrow’s CPI will be made to prevent a market crash and will quietly correct itself in the coming weeks, as it has done in the past few CPIs,” he said. said. clearly Some of the Twitter comments.
Ark Invest Chief Executive Kathy Wood has issued a grim forecast for the outcome of further rate hikes.
private twitter thread ARK continues to increase exposure to cryptocurrencies under Wood’s leadership, March 13called on the Fed to “pivot” interest rates.
“If the Fed continues to focus on lagging indicators like the CPI and does not turn around in response to the deflationary pressures exhibited by the inverted yield curve, this crisis will devour more local banks and the US banks. It will further centralize if not nationalize the industry system,” she wrote.
The views, thoughts and opinions expressed herein are those of the authors only and do not necessarily reflect or represent the views or opinions of Cointelegraph.