Bitcoin poised for major move as CPI data looms
Bitcoin is on the verge of vanishing from the current consolidation beach on imminent IPC data.
The cryptography market looks closely at the exit today from the January consumer price index by the American Labor Departmentwith data that should trigger Bitcoin (BTC) Breakout compared to its consolidation range from $ 90 to $ 110,000.
The IPC report is expected to be released at 1:30 p.m. UTC and should display a modest increase of the month over the month of 0.3%, a slight decrease compared to 0.4%.
This reading will probably be the key factor to influence the Federal reserveThe next interest rates are moving. According to the Fedwatch tool of the CME, there is currently a probability of 54% that the Fed can reduce rates or let them unchanged this year.
If the IPC report is lower than expected, it will probably trigger a lower decrease in the treasury and a lower US dollar. The two results are expected to increase the demand for risky assets such as Bitcoin, which recently consolidated between $ 90,000 and $ 110,000.
In his Recent article on xMartinez stressed that “the BTC accumulation trend score is close to zero, signaling a consolidation period. A change of request here could prepare the field for the next big blow! »»
This suggests that investors are probably waiting for a catalyst for the price to break out, the next IPC report which serves as a catalyst.
While investors hope that a positive IPC report could give Bitcoin a boost, the prospective inflation indicators suggest that higher inflation could be on the horizon. This could limit the capacity of the Fed to reduce rates aggressively, attenuating expectations for a sustained Bitcoin rally.
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