Bitcoin (BTC) held on to the key $26,800 level ahead of Wall Street’s opening on October 12 as U.S. inflation data continued to exceed expectations.
CPI beats expectations, BTC price reacts
Data comes from Cointelegraph Markets Pro and trading view It showed that Bitcoin price volatility remained moderate after hitting a two-week low the previous day.
These come as U.S. macroeconomic data continues to surprise markets by showing persistent inflation.
The Consumer Price Index (CPI) for September released that day supported this trend, with an annual increase of 3.7%, compared with expectations of 3.6%. Excluding food and energy, the figure was 4.1% – in line with forecasts.
“The all-items index rose 3.7% in the 12 months to September, the same as in the 12 months to August,” an official said. Press release Confirmed from the U.S. Bureau of Labor Statistics.
“The index for all items excluding food and energy rose 4.1% over the past 12 months. In the 12 months to September, the energy index fell 0.5% and the food index rose 3.7% over last year.”
Still, Financial Review Source’s Corbisi letter highlights the current dilemma that monetary policy and the Fed find themselves in.
“PCE and PPI inflation rose, and CPI inflation was higher than expected,” wrote on X.
“How is it possible that the Fed will cut rates anytime soon?”
The concept of “longer-term higher” U.S. interest rates is widely expected to put pressure on risk assets, including cryptocurrencies.
Following the CPI, the likelihood that the Fed will further raise interest rates at the next Federal Open Market Committee (FOMC) meeting on November 1 remains slim at 7.4%, according to CME Group. Fed Watch Tool.
Bitcoin and Macro Analyst: “Bad = Bad”
When it comes to Bitcoin itself, already cautious market participants have no reason to expect Bitcoin to resume its rise anytime soon.
Related: Bitcoin price rise in doubt?Bitcoin supply is young, echoing 2022 bear market
Popular trader Skew continues to mark $26,800 as an area for bulls to turn towards support.
Bitcoin USD 4 hours
Later today the CPI will find out how the LTF structure developsThere is a clear 4 hour demand area here & $26,800 is still important to control
If buyers can retrace and hold $26.8K, they will be looking for some kind of 4H EMA trend test or retracement
Be more cautious before confirming pic.twitter.com/58BKDZyLBj
— Skew Δ (@52kskew) October 12, 2023
Monitoring resource material indicators shows bid illiquidity well above $24,750, a key level for the past two quarters.
watching #BTCUSDT exist #FireCharts There are three things worth noting 30 minutes before today’s economic report is released:
1. Bid liquidity drops to LL at $24,750
2. Yellow stopped the TWAP selling strategy
3. Purple Whale has been selling pic.twitter.com/4cant18F4o— Material Indicators (@MI_Algos) October 12, 2023
“It’s been a while since we discussed whether BTC price is good = good or good = bad,” co-founder Keith Alan Add to Comments on macro aspects before CPI.
“I’m not an economist, but based on yesterday’s report, the overall economic outlook and geopolitical tensions, I would say bad = bad.”
Trading firm QCP Capital continues to say that despite various potential bullish factors in the fourth quarter, the downward trajectory of Bitcoin and the largest altcoin Ethereum (ETH) remains “unabated.”
“Hopefully, the relative underperformance of BTC and ETH on the upside also means that their betas will also reduce to the downside if the Consumer Price Index (CPI) is stronger than expected,” it wrote in a note. market update earlier in the day.
“Otherwise, we will continue to focus on the 25-26k key level on the downside and the 29-30k key level on the upside, which will be critical in determining the next trend.”
This article does not contain investment advice or recommendations. Every investment and trading activity involves risks, and readers should do their own research when making decisions.
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