Why Is The Bitcoin Price Up Today, But Could Be Down Tomorrow
– Bitcoin price is currently experiencing some action after a week of moving sideways.
– Bulls are pushing for the most immediate critical resistance.
– Increasing uncertainty in the macroeconomic landscape supports the spike in price action.
– Solana stands out with a 6% profit on similar timeframes.
All eyes are set on tomorrow’s US Consumer Price Index (CPI) data, which is seen as a proxy to gauge inflation in the country’s fiat currency. Positive expectations surround this event, as most investors anticipate a decline in inflation. If this happens, the Federal Reserve (Fed) might slow down its interest rate hike program, providing room for Bitcoin to break and flip $30,000 into support. However, any surprises in the CPI data could trigger the opposite effect.
Crypto analyst firm The King Fisher points out a concentration of long liquidity between the $27,000 to $29,000 levels. This liquidity could act as a magnet, erasing BTC’s gains and pushing it into support if negative CPI data is released.
On the other hand, positive CPI data may have little impact on BTC, allowing it to continue within its current range. Analyst Keith Alan from Material Indicators believes that Bitcoin bulls are fighting to regain control over the 50-day moving average (MA). While bullish momentum may weaken, a push into the range of $30,200 to $30,000 is likely.
In conclusion, the Bitcoin price is currently influenced by the upcoming US CPI data. Bulls are pushing for a breakout, but any surprises in the data could lead to a reversal. The concentration of long liquidity and the battle for control over the 50-day MA are important factors to consider.
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