Inflationary Concerns Rise As US CPI Exceeds Predictions, Bitcoin Price Reacts
14 Fevereiro 2024 - 12:00AM
NEWSBTC
The latest US inflation data significantly impacted the Bitcoin
price and most of the cryptocurrency market, with some exceptions.
According to a report from the Labor Department, inflation rose
more than expected in January, driven by higher shelter prices.
Furthermore, the consumer price index (CPI), which measures the
prices consumers face for goods and services across the economy,
saw a 0.3% increase for the month. On a 12-month basis, the CPI
stood at 3.1%, slightly lower than December’s 3.4%. Bitcoin Price
Retreats Amid Higher-Than-Expected CPI Figures According to recent
reports, the higher-than-expected CPI figures could pose challenges
for the Federal Reserve (Fed), as officials anticipate inflation to
recede and reach their 2% annual target. The central bank aims to
adjust monetary policy, which has been tight over two
decades. However, the January increase in inflation may delay
the Fed’s plans to ease rates, as it will require more data before
initiating a rate-cutting cycle. This outcome disappointed those
who expected inflation to decrease and prompted a reassessment of
the timing for potential rate adjustments. Related Reading: These
Dogecoin Whale Transaction Stats Spell Trouble Despite Ongoing
Crypto Rally On this matter, market intelligence platform Santiment
reported that the 3.1% CPI result caused market cap losses in
cryptocurrency and equities markets. The Bitcoin price, which had
breached the $50,000 mark for the first time in over two years, has
fallen below $49,000 in response. According to the crypto
platform’s analysis, this mild retrace will likely polarize crowd
sentiment, potentially leading to significant panic sales. In such
a scenario, the justification for dip buying becomes more viable,
but sentiment may turn negative. Bitcoin’s Market Cycle
Patterns Market expert Crypto Con has identified a striking pattern
in Bitcoin’s market cycles, specifically concerning the 20 Week
Exponential Moving Average (EMA). Despite mounting concerns
regarding inflation data, the analysis suggests that the Bitcoin
price behavior tends to follow a consistent six-step pattern, with
significant implications for support and potential correction
levels. According to Crypto Con’s analysis, Bitcoin’s price
movement in each market cycle has adhered to a similar pattern
involving the 20-week EMA. The pattern unfolds as follows:
First, as seen in the chart below, the Bitcoin price breaks above
the moving average, marking the beginning of a new cycle and a
notable uptrend. However, after the completion of the initial run,
the price retraces and falls below the moving average, signaling a
temporary shift in sentiment. Despite the temporary setback,
Bitcoin’s price then breaks above the moving average once more,
indicating the start of a true rally and resumption of the upward
trend. At this stage, price action creates a false retest of
support, narrowly missing the moving average as a crucial support
level. This false retest is a common occurrence in Bitcoin’s market
cycles. Following the false retest, Bitcoin embarks on a second
run, representing a further advancement in the market cycle.
Bitcoin’s price is currently positioned during this phase.
Related Reading: Dogecoin Plunges 5% After Elon Musk Gets Called
Back For Twitter Probe According to the analysis made by Crypto
Con, the full correction in Bitcoin’s price may not need to be as
deep, as the moving average currently sits at approximately
$40,000. Ultimately, the analysis’s suggestion that the
Bitcoin price may not dip below the $40,000 level during the
ongoing bull run, even in the face of anticipated corrections, is
particularly encouraging for bullish investors. Bitcoin is
trading at 48,600, down 3% in the last 24 hours. Featured image
from Shutterstock, chart from TradingView.com
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