The Impact of CPI Inflation on the Market
The recent release of Consumer Price Index (CPI) inflation numbers has generated some excitement in the market. Although there were expectations of a 3.6% year-over-year inflation rate, the actual data revealed a slightly higher figure of 3.7%. This development has sparked interest in the upcoming Federal Reserve meeting, also known as the FOMC meeting.
Most market participants are predicting that there will be no rate hike at this meeting, which means that current interest rates will be maintained.
The State of Bitcoin
According to analysis from Crypto World on YouTube, the Bitcoin chart has not undergone significant changes recently. Bitcoin is still finding support within the range of $24,300 to $25,300. Although it has not completely broken free from its bearish trend, it is important to note the potential signs of a bullish divergence.
Despite remaining within the downward trend, there is a possibility of a breakthrough. The daily Bitcoin RSI is showing promise with higher lows, indicating a potential shift towards more positive momentum in the short term.
Key levels to monitor include strong support between $25,600 and $25,700, with additional support at $25,000. Resistance is expected in the range of $26,600 to $26,800.
The Status of Ethereum
In terms of Ethereum, there has been a recent short-term improvement in its price. However, it is still below an important level that used to act as support and is now acting as resistance. This level falls between $1,620 and $1,660.
Key price levels to watch for Ethereum include support around $1,510 to $1,520 at the 50% Fibonacci retracement level. If it drops further, there is another support area between $1,360 and $1,400. On the other hand, if Ethereum increases in value, it will face resistance in the range mentioned earlier, which is between $1,620 and $1,660.
Hot Take: The Crypto Market’s Response to Inflation
The recent CPI inflation data has created anticipation in the market, particularly regarding the upcoming Federal Reserve meeting. Bitcoin’s chart has shown some stability within its bearish trend, potentially indicating a bullish divergence. Ethereum has experienced a short-term price improvement but still faces resistance at key levels.
Overall, the crypto market continues to be influenced by various factors such as inflation rates and market sentiment. It is essential for investors to closely monitor these trends and levels to make informed decisions.
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