BTC Price Surges After US CPI Data Release
The recent release of the United States Consumer Price Index (CPI) data, which showed a higher-than-expected increase of 0.6%, has had a significant impact on the price of Bitcoin. The cryptocurrency managed to regain support at $26,000 and is now aiming to break through the $27,000 level. This bullish response from Bitcoin comes as CPI inflation rose to 3.7% on a year-over-year basis, surpassing economists’ predictions.
Bullish Outlook for BTC Price
Bitcoin’s positive reaction to the CPI data has led to a general bullish sentiment in the market, with the overall cryptocurrency market capitalization rising by 1.1% to over $1.1 trillion. Bitcoin alone accounts for more than half of this market value, with a total capitalization of $518 billion.
Furthermore, on-chain data from Glassnode and Blockware Solutions indicates that long-term holders are dominating the market. Bitcoin’s circulating supply has decreased by 5.4% this week, suggesting that investors are choosing to hold onto their BTC for long-term speculation rather than engaging in short-term trading activities.
Potential Breakout and Price Rally
The recent climb in Bitcoin’s price from the support level at $25,000 has reduced the likelihood of a drop to $22,000. The current upward movement on the price chart reinforces the bullish momentum and increases the chances of a breakout above $30,000.
If traders respond to the buy signal from the Moving Average Convergence Divergence (MACD) indicator and increase their long positions, it could trigger a significant price rally. The shrinking circulating supply of Bitcoin means that any increase in demand will have a substantial impact on driving the price higher.
Hot Take: Bitcoin’s Path to $30,000
While Bitcoin still faces potential resistance at $27,400 and $28,200, a breakout above these levels could lead to a rapid ascent towards the psychological resistance at $30,000. However, it’s important to note that support areas at $26,000 and $25,000 will remain significant, and if they are weakened, Bitcoin may still drop to $22,000. Nevertheless, breaking above the 200-day Exponential Moving Average (EMA) and the upper descending trendline could mark a point of no return for Bitcoin’s price as it continues its upward trajectory.
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