Home Bitcoin News Bitcoin Price Rises Above $35,000, Bulls Aim for $38,000 Amid Inflation Data Optimism

Bitcoin Price Rises Above $35,000, Bulls Aim for $38,000 Amid Inflation Data Optimism

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Bitcoin’s price has demonstrated resilience and regained momentum as it surges back above the pivotal support level of $30,000. After briefly dipping below this level and reaching a low of $29,705 over the weekend, the pioneer cryptocurrency has staged a remarkable recovery, bolstering the bullish sentiment among investors.

During the Asian session on Tuesday, Bitcoin experienced a 1.1% gain, propelling its price to $30,500. With a market capitalization of $592 billion and a trading volume of $15 billion, Bitcoin continues to assert its dominance and attract significant attention from market participants, as reflected in data provided by CoinGecko.

Cryptocurrency enthusiasts eagerly await the release of the United States June Consumer Price Index (CPI) and the Producer Price Index (PPI). These inflation data releases, scheduled for Wednesday and Thursday, respectively, are expected to exert a substantial influence on Bitcoin’s price trajectory.

Market participants anticipate signs of declining inflation, which has been steadily decreasing since May. A decline in inflation would validate the Federal Reserve’s decision to pause interest rate hikes and temporarily ease concerns about potential 25 basis point increases.

While the Federal Reserve’s tight monetary policy has successfully reduced the CPI from its peak of 9% in August to 4% in May, economists express concerns about excessive pressure leading to a severe recession in the United States.

Notably, market analysts project a drop in the CPI to the 3% range for June. Some, including Edward Moya, a senior market analyst at Oanda, are even more bullish, with a projection as low as 2.8%. Such a significant decrease in inflation would be welcomed by cryptocurrency investors as it would support the Federal Reserve’s decision to maintain a pause on interest rate hikes. Moreover, reduced inflation supports risk markets like Bitcoin and stocks, fostering a more favorable environment for investors.

In recent times, Bitcoin’s price has encountered resistance from both micro and macro forces. The consolidation phase in the crypto market has given rise to a double-top pattern, which potentially indicates a reversal of the ongoing uptrend. However, bulls are determined to defend this pattern at all costs to sustain the upward trajectory. Failure to do so could result in a price plunge to $25,000, with the possibility of further challenges as liquidity diminishes at $20,000.

To confirm the validity of the double-top pattern, traders closely monitor the support level that connects the lows between the two peaks, currently set at $30,000. A breach of this support level would suggest waning buyer momentum and an increasing influence of sellers. Traders often utilize various indicators such as volume, moving averages, and oscillators to confirm the pattern and assess the strength of the potential reversal.

It’s important to note that the Moving Average Convergence Divergence (MACD) indicator currently displays a sell signal on Bitcoin’s daily chart. Additionally, the Relative Strength Index (RSI) indicates that bears could exert significant influence on Bitcoin’s price, especially if the U.S. CPI data fails to meet the anticipated decrease in inflation.

However, if bulls successfully overcome the resistance at the double-top pattern’s level of $32,000, supported by positive inflation data, investor risk appetite for Bitcoin and the broader cryptocurrency market is likely to soar. Such a scenario would potentially trigger a strong rally, propelling Bitcoin towards the $35,000 and $38,000 levels.

The cryptocurrency market remains highly dynamic and subject to a multitude of factors. Therefore, Bitcoin’s price movements in the coming days, particularly in response to inflation data, will provide valuable insights into the market’s direction and potential future trends.

As investor sentiment continues to evolve, it is crucial to closely monitor market indicators and expert analyses to navigate the dynamic cryptocurrency landscape successfully.

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Sakamoto Nashi

Nashi Sakamoto, a dedicated crypto journalist from the Virgin Islands, brings expert analysis and insight into the ever-evolving world of cryptocurrencies and blockchain technology. Appreciate the work? Send a tip to: 0x4C6D67705aF449f0C0102D4C7C693ad4A64926e9

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