Can Bitcoin Grip Price Surge After Release Of CPI Data?
The global crypto market registered a decline since the beginning of this week after a broad recovery. As the investors hope for an upward trend, experts hints that the market is stuck in a decision situation. However, Bitcoin registered green index since the release of CPI data.
Bitcoin price breaches $24K
According to Cryptoquant, the digital asset market is looking to rise, however, it is not able to find any support yet. Meanwhile, the cumulative market cap surged by more than 3% over the last day to stand at $1.14 trillion.
Expert mentioned that the technical signals suggest that Bitcoin (BTC) formed a rising wedge pattern and too below the resistance line. It added that relative strength index (RSI) and MACD oscillators depict. This flashes a pre signal of the bearish market ahead. It adds that on-chain analysis also asserts this issue.
Meanwhile, the Bitcoin prices recovered to surge over 4% in the last 24 hours. BTC breached the vital $24k price level. It is trading at an average price of $24,032, at the press time. Bitcoin’s 24 hour trading volume skyrocketed by more than 10% to stand at $28.05 billion.
Bitcoin price jumps are backed by the release of US inflation data. As per the U.S. Bureau of Labor Statistics, inflation eased to 8.5% annually. However, it is still near a 4 decade high.
Will CPI data help the crypto market?
The expert suggested that a jump in transactions and active addresses can signal market support for the price surge. Over the past few weeks, the relative price has surged but the number of transactions and active addresses declined. This clearly signals a negative divergence in the market.
It added that the buyer/seller ratio also registered a decline at the same time. This directly suggests these are pre signal of the price reduction in the time ahead.
Meanwhile, the market was looking for an upward trend as the big holders remained still. However, the release of the CPI data has pushed positive market sentiments.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.