bitcoin (BTC/USD) has retreated more than 2.5% over the past 24 hours, falling again below the $19,000 level.
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However, while the overall picture is one of massive accumulation over the past several weeks, and that continues in the case of being near the key support area that marked the 2017 bull cycle highs, the price remains below $19,000. .
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On Thursday morning, bitcoin traded as low as $18,652 on major cryptocurrency exchanges, as data from CoinGecko showed, marking another drop ahead of key US inflation data. Therefore, if the market emerges chaotically on the inflation data this morning, the weekly range for BTC is around $20,240, which would drop the current price level by about 8% and be vulnerable to a fresh decline.
Crypto analyst Michael van de Pope noted the market anticipation around the CPI as the downside for bitcoin and other cryptocurrencies today.
Markets await US inflation data
While Bitcoin holds key levels below the $20k mark, a dump in the equity market could mean further losses for BTC. Outlook follows potential flip into sales mode shares If investors look at today’s data, price pressure will remain elevated.
As well as being an indicator of whether the US Federal Reserve will go for a fourth straight higher interest rate, an uptick in the core CPI – which excludes food and energy – would not only boost Dollar But also Treasury yields. This can add to selling pressure in riskier asset markets, including crypto.
Analysts expect September CPI data to tick up 8.3% to 8.1% year-on-year, but forecast annual ‘core’ readings to go up to 6.3% to 6.5%. While these data points are approximate, even a slight beat or miss could mean a fresh downward move.
The downside is also likely looking at yesterday’s Producer Price Index (PPI), which saw month-on-month growth of 0.4% against expectations of 0.2%.
PPI and CPI move in the same direction, suggesting a CPI release with a MoM of more than 0.2% will scare off investors.
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