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Bitcoin is currently experiencing a short-term bullish relief, replicating historical patterns. With less than 24 hours until new inflation data is released, this upcoming information could significantly influence the market in the short term.
Upcoming Inflation Data:
In less than 24 hours, new inflation numbers for the United States will be announced, specifically the Consumer Price Index (CPI) inflation rate. According to analyst Josh of Crypto World, Bitcoin’s short-term price movement is closely tied to the upcoming inflation data. Expect potential volatility based on the CPI release.
Market Expectations:
The market expects the CPI inflation rate to be around 2.9% year-over-year, with the trading economics forecast slightly higher at 3.0%.
2.9% CPI Inflation (Expected): This is considered neutral for the market, as it aligns with current expectations and is already factored into the market price.
Below 2.9% CPI Inflation: If the inflation rate is lower than 2.9%, it would be considered bullish for Bitcoin and could lead to a slight upward movement in price.
Above 2.9% CPI Inflation: If the rate is higher than 2.9%, such as at 3% or above, it would be bearish and could result in a short-term price drop.
Bitcoin Price Analysis:
The current price action shows similarities to March 2020, with a bullish relief pattern followed by a short-term pullback. If this historical trend continues, we might see a slight bullish movement in the short term, though overall price action could remain neutral.
The Bitcoin RSI is at neutral levels around 50, indicating no significant buying or selling pressure. Bitcoin is near the $61,000 level. A break above $61,000 could be bullish if it holds as support, but resistance remains strong at $63,000 and between $67,000 to $68,300.
Support: $60,000, with additional support at $57,500 and between $56,000 to $57,000.
Resistance: $61,000 (short-term), $63,000 (strong), $67,000 to $68,300