BTC Price Remains Resilient Amid US Inflation
The price of Bitcoin continues to climb steadily after finding support at $25,000 earlier in the week. This positive momentum was further boosted by the announcement of another spot Bitcoin exchange-traded fund (ETF) application by Franklin Templeton Investments. While the ETF didn’t push BTC price past the resistance at $26,565, it did improve market structure and enhance investor confidence.
Despite stubborn inflation in the US, the improved sentiment surrounding Bitcoin has prevented it from succumbing to pressure. The August Consumer Price Index (CPI) showed a significant increase, with a 0.6% spike from the previous month and a 3.7% rise from the previous year. Core prices, which exclude energy and food, also saw a 0.3% monthly increase and a 4.3% yearly increase.
Bitcoin’s Resilience and What to Expect
Bitcoin and Ethereum have shown impressive resilience to US inflation over the past few months. Investors are less reactive to spikes in CPI, with both short and long-term holders choosing to maintain their positions ahead of the halving in April 2024.
While BTC price hasn’t breached the seller congestion at $26,565, it hasn’t triggered a sell-off either. Currently sitting at $26,239, Bitcoin remains stable above short-term support at $26,000. The four-hour chart shows that Bitcoin is above key support areas such as the descending trendline, the 100-day Exponential Moving Average (EMA), and the 50-day EMA.
If Bitcoin continues to hold above these levels, traders may seek exposure to BTC longs, potentially leading to an uptrend towards $28,000 and $30,000. The Moving Average Convergence Divergence (MACD) indicators suggest a gradual shift towards a bullish outlook, further supported by the Supertrend’s call to buy BTC.
Will BTC Price Reach $100,000?
During a panel discussion in Singapore, Davis Hui, the vice president of Canaan, shared sentiments that Bitcoin’s supply deficit post-halving in 2024 could drive its price to $100,000. The anticipated decrease in supply coupled with BlackRock’s entrance into the ecosystem are expected to be the main driving factors for the next bull market.
Hui highlighted the significant influence of BlackRock, which manages $10 trillion in assets compared to the overall cryptocurrency market cap of $2 trillion. With BlackRock potentially entering the market and increased BTC demand alongside decreased supply, Bitcoin’s price is likely to rise.
Hot Take: Bitcoin Remains Resilient Despite US Inflation Pressure
Bitcoin’s ability to withstand pressure from stubborn inflation in the US showcases its resilience and growing investor confidence. Despite unfavorable inflation data and resistance at $26,565, BTC price has remained stable above short-term support levels. This stability, along with positive indicators like the MACD and Supertrend signals, suggests a potential bullish trend towards $28,000 and $30,000.
Furthermore, predictions of Bitcoin reaching $100,000 post-halving in 2024 are fueled by expectations of decreased supply and increased demand from influential players like BlackRock. As Bitcoin continues to navigate market challenges and gain institutional support, its long-term growth potential remains strong.
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