Mar 14, 2023
CPI Data Awaited as Bitcoin Tests $25K Resistance
As markets await key economic data from the United States, Bitcoin (BTC) is eyeing key resistance near the $25,000 mark. Data from Cointelegraph Markets Pro and TradingView shows BTC/USD making monthly highs of $24,917 on Bitstamp overnight. The pair has remained buoyant despite multiple U.S. bank closures, and all eyes are now on the Consumer Price Index (CPI) print for February.
The CPI print can be a classic crypto volatility catalyst, and last month it showed an unwelcome slowdown in inflation abating. This caused fears that the Federal Reserve would keep interest rates higher for longer, though the banking crisis overshadowed the inflation debate. Now, expectations point to the Fed abandoning rate hikes altogether.
“Bitcoin sweeping the highs here as it’s testing range high at $25K,” Cointelegraph contributor Michaël van de Poppe, founder and CEO of trading firm Eight, told Twitter followers. “You’d preferably want to see some period of consolidation (CPI day today) before continuation. If markets sweep range high at $25.2K, make a bear. div and fall back, I’d be looking for shorts to $23K.”
On-chain monitoring resource Material Indicators points to a potential shake-up in order book composition thanks to CPI. If the data outpace expectations, bid support could “rug,” it warned, opening up the path for a deeper BTC price correction. An accompanying chart from co-founder Keith Alan showed $23,600 and $25,000 as the principal areas of bid and ask liquidity, respectively.
Material Indicators added that in order for Bitcoin’s overall rally to have legs, it would need to deliver multiple weekly closes above its 200-week moving average (WMA). “Need full candles above the 200 WMA to consider a breakout,” it confirmed.
Lower-than-expected CPI readings would boost the case for the Fed to lay off further rate hikes and loosen financial conditions. U.S. President Joe Biden last week appeared to have no concerns that inflation was on the right track, even before the banking crisis fully erupted.
However, popular trader xTrends believes that the CPI will be “manufactured” to prevent a market crash. Cathie Wood, CEO of ARK Invest, issued a grim forecast for the consequences of any further rate hikes in a dedicated Twitter thread on March 13. She called for a Fed “pivot” on rates, saying that if the Fed continues to focus on lagging indicators, the crisis will devour more regional banks and further centralize, if not nationalize, the US banking system.
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Disclaimer: All investment or financial opinions expressed by MoonLanding Media are not recommendations and are intended for entertainment purposes only. Do your own research prior to making any kind of investment. This article has been generated based on trending topics, has not been fact checked and may contain incorrect information. Please verify all information before relying on it.
