Inflation Concerns Cause Bitcoin Price Dip
Following the Federal Open Market Committee’s (FOMC) recent comments, the price of Bitcoin experienced a 3% drop. The FOMC’s minutes emphasized the need for continued restrictive policies to address inflation. Policymakers acknowledged the delicate balance between tightening measures and controlling inflation.
US CPI Takes Center Stage
The US’s annual headline inflation for September is expected to slightly decrease from 3.7% in August to 3.6%. The core annual inflation is also projected to dip from 4.3% to 4.1%. The main concern is whether inflation will stagnate on its way to the target of 2%.
Market Observers Watching Bond Market Reactions
Market observers are closely monitoring reactions in the bond market to gain insights into Bitcoin’s future trajectory. While current metrics may not provide significant insights, the bond market’s response could offer valuable information.
Bitcoin Price and Prediction
Bitcoin is currently trading at $26,800 with a 1% decline in the past 24 hours. It has a trading volume of $12.71 billion and a market cap of approximately $523.28 billion. The circulating supply is nearing its maximum limit of 21,000,000 BTC.
The 4-hour chart shows that Bitcoin’s price movement is pivotal at $26,486. Resistance levels are at $28,020, $29,032, and $30,565, while support levels are at $25,474, $23,941, and $22,929. Technical indicators suggest a bearish sentiment.
Hot Take: Bearish Trend for Bitcoin
Based on market dynamics and technical analysis, the current trend for Bitcoin is bearish. Traders should exercise caution and closely monitor any potential breakout or movement in either direction.
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