Home CryptoMarket Bitcoin price sees new 2023 high as CPI sends BTC price above $26K

Bitcoin price sees new 2023 high as CPI sends BTC price above $26K

by CryptoFan
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Bitcoin (BTC) surged above $26,000 on March 14 as US Consumer Price Index (CPI) data showed mixed signs of inflation.

BTC/USD 1 hour candlestick chart (Bitstamp).Source: Trading View

CPI Boosts 9-Month BTC Price High

Cointelegraph Markets Pro and TradingView BTC/USD followed suit as the release of February CPI numbers saw sudden volatility.

Inflation rose 6% year-on-year, but was 0.4% month-on-month, both in line with expectations. Commodities excluding food and energy were slightly better than expected, up 0.5%.

Bitcoin appears to be responding positively to the data, which may help the Federal Reserve avoid falling into a trap between rising inflation and avoiding rate hikes amid the ongoing banking crisis. I was able to avoid it.

In response, Venturefounder, a contributing analyst at on-chain analytics platform CryptoQuant, suggested that the market is now anticipating a “pivot” of the hike.

“Markets: Oh yeah, big win in the fight against inflation! No more rate hikes and the Fed will cut rates by 50 BPS by 2023 EoY.” murmured.

“If Powell changes his 2% inflation target, it would be the biggest lag move by the Fed since the U.S. dollar pulled off the gold standard in the 1970s.”

Nevertheless, trading resource Game of Trades said the CPI was not low enough to reflect the Fed’s “aggressive” change of stance and actions following the March 2020 COVID-19 crash. claimed.

“Consensus grabbed attention with the CPI reaching 6%, but not low enough to give room for the Fed to aggressively intervene during an ongoing crisis, as it did during C19.” I tweeted. read.

Volatility Underway as BTC Price Targets $26,000

The CPI is notorious for causing unpredictable BTC price movements, which is why the situation remains unclear at the time of writing as to where BTC/USD will head next.

RELATED: Bitcoin price nears $25,000 as analysts bet on CPI impact

Important before CPI release sell-side liquidity Parked for over $25,000. Main target for bulls on the lower timeframes.

BTC/USD orderbook data (Binance).Source; Key Indicators/Twitter

Bitcoin’s local high of $26,150 marks a new record for 2023. This is the best performance since June of last year.

BTC/USD has broken above the key 200-period moving averages and acted as resistance on the weekly timeframe.

200MA BTC/USD 1 Week Candle Chart (Bitstamp).Source: Trading View

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