Bitcoin Prices Retest Key Moving Average, Is The Bear Run Over?
Analyst on X remains optimistic, noting that Bitcoin prices have retested the 100-day moving average. Historically, such retests have marked a local bottom followed by significant upward rallies.
- Recent instance in January saw a 90% surge post retest
- If history repeats, a bullish outcome could be imminent
However, there are liquidation pressures affecting Bitcoin prices, with sellers resisting higher highs.
Analyst Observations On Bitcoin Trends
As per the daily chart, local resistance and support levels stand at $66,000 and $56,500 respectively. The current sideways movement will determine the future trend.
- Bullish breakout above $66,000 might trigger a surge
- Past gains of 90% post-similar retests are not guaranteed
Inflation Data Impact On Bitcoin’s Growth
This week will be crucial with the release of US Producer Price Index (PPI) and Consumer Price Index (CPI) readings. Traders anticipate volatility linked to inflation data.
- Decrease in inflation could weaken the USD
- Bitcoin may benefit as investors seek value storage alternatives
Analysts suggest that declining oil prices and a strong labor market hint at lower inflation in the US, aligning with expectations for this week’s PPI and CPI readings.
Hot Take: Bitcoin’s Sideways Movement Amidst Market Pressure
Bitcoin prices are moving sideways when writing and are generally firm. Even though there are marks of strength, the world’s most valuable coin is still swimming against ferocious downstream currents and could risk plunging below $60,000 and May 2024 lows.
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