Ever since the Bitcoin price has been reacting to external factors, CPI has become one of the prominent catalysts. The markets have now become dependent on the rates to increase volatility, which could be in the direction of volume-induced volatility. Currently, the fresh CPI rates have been announced, which stand at 3.7%, higher than expected. Hence, the BTC price, which is stuck at $25,800, is believed to propel above $26,000 soon
After rising high, will the Bitcoin price hold above the gains or drop back to the levels around its previous consolidation?
In recent times, the BTC price has displayed huge variation and is trading above the weekly and monthly open levels. If it had failed to rise above these levels, a prominent analyst, Daan Crypto Trades, believed that Bitcoin could have begun with a fresh retrace. However, the upcoming volatility may begin with an upside continuation upon acceptance above $26,400.
“Bitcoin range high was swept, monthly/weekly open was held.
Now moving back towards the range high. CPI in 45 min so that will definitely cause some more volatility.
Upside correction upon acceptance above $26.4K. Below there it will remain a range with choppy price action,”
As per some experts, Bitcoin price volatility was expected if the numbers were higher or lower than 0.6%. If it is higher, a short-term bearish trend may prevail; if it is lower, a short-term bullish trend may prevail. Or if, in this case, the CPI rates stand at 0.6%, then not much price movement may be expected. Now that the rates have risen beyond expectations, a significant rise in the BTC price may be underway.
Credit: Source link