Bitcoin (BTC) was watching for key resistance near $25,000 on March 14 as markets awaited key economic data from the United States.
He hopes that the CPI will bring about a “consolidation” of Bitcoin
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD overnight at monthly highs of $24,917 on Bitstamp.
The pair remained on the rise after the impact of several US bank closures sent crypto markets reeling skyrocketing.
Now, all eyes were temporarily on the Consumer Price Index (CPI) print for February when it came to BTC’s short-term action.
The CPI, a classic crypto-volatility catalyst in its own right, showed last month unwelcome slowdown while reducing inflation, which in turn led to fears that the Federal Reserve would keep interest rates higher for longer.
Risky assets had no time to worry, however, as the banking crisis subsequently overshadowed the inflation debate. By that day, expectations had already indicated that the Fed would abandon rate hikes altogether—regardless of CPI trends.
“Bitcoin is hitting a high here as its test range is up to $25k,” Cointelegraph contributor Michaël van de Poppe, founder and CEO of trading firm Eight, he said Twitter followers.
“You would prefer to see some period of consolidation before proceeding (today’s CPI day). If the markets move high at $25.2000, get higher. div and step back, I’d be looking for shorts under $23,000.’
A material monitoring source in the Material Indicators chain pointed to a potential upheaval in the composition of the order book due to the CPI.
If the data beat expectations, bid support could “carpet,” he warned, paving the way for a deeper BTC price correction.
“Asia may continue to consume demand liquidity, paving the way for volatility ahead of the CPI report,” it said he commented about movements on the BTC/USD pair on Binance.
“If CPI is hot, I expect support to be firm. If it’s cold and the next bank doesn’t sink before lunch, a bigger short press.’
The accompanying chart from co-founder Keith Alan showed $23,600 and $25,000 as the main areas of supply and demand liquidity.
Material Indicators added that Bitcoin would need to deliver several weekly closes above its 200-week moving average (WMA) for the overall recovery to get on its feet.
“We need full candles above the 200 WMA to consider a breakout,” it confirmed.
CPI: “Made” or “in some fixed form”?
Lower-than-expected CPI readings would support the Fed’s arguments to delay further rate hikes and ease financial conditions.
Related: Fed Launches ‘Invisible QE’ – 5 Things to Know in Bitcoin This Week
US President Joe Biden last week seemed to have no concerns that inflation was on the right track, even before the banking crisis was in full swing.
In the White House Press conferenceBiden said he was “optimistic that we will get CPI next week. Hopefully we will be in some solid shape.”
However, there were suspicions among analysts. A surprise drop in CPI would be most helpful for the Fed, which is currently underpinned by recent events, as suggested by popular trader xTrends.
“I believe tomorrow’s CPI will be produced to prevent a market crash and will be quietly revised weeks later, as has been the case with the last few CPI numbers,” he said. exposed in the comments section on Twitter.
Meanwhile, a more stark macro warning came from Cathie Wood, chief executive of ARK Invest, who issued a grim forecast of the implications of any further rate hikes.
In reserved Twitter thread on March 13. Wood, under whose leadership ARK continues to grow exposure to cryptocurrenciescalled on the Fed to “pivot” rates.
“If the Fed continues to focus on lagging indicators like the CPI and does not pivot in response to the deflationary forces telegraphed by the inverted yield curve, then this crisis will engulf more regional banks and further centralize, if not nationalize, American banking. system,” she wrote.
The views, thoughts and opinions expressed herein are solely those of the authors and do not necessarily reflect or represent the views and opinions of Cointelegraph.
