The latest Consumer Price Index (CPI) inflation data, released recently, came in at 2.5% year-over-year—very close to expectations. Although some analysts forecasted a slightly higher rate of 2.6%, the actual figure did not lead to any significant market movements.
Bitcoin Technical Analysis
Moving on to Bitcoin’s technical analysis, analyst Josh from Crypto World noted that Bitcoin has maintained its position above support levels but remains below key resistance thresholds. While the larger bearish trend still holds, there is a noticeable build-up of shorter-term bullish momentum.
Important Resistance And Support Levels
Bitcoin’s major support sits around $52,500, with resistance near $68,000. In the 2-day timeframe, Bitcoin continues to hover between these levels, showing no significant changes. Recently, Bitcoin broke above the $56,000-$57,000 range and successfully retested this area.
Despite a brief dip below $56,000, Bitcoin has closed above it on the daily timeframe, indicating that this zone is now acting as support. As long as Bitcoin stays above this level, the short-term trend remains bullish, even though the longer-term trend is still bearish.
If Bitcoin holds above this support, the next resistance levels to watch are around $59,500, $60,000-$61,000, and $64,500. Conversely, if Bitcoin were to break back below $56,000 and close below this level on the daily chart, the short-term bullish trend could be invalidated, flipping the market more bearish again.
Bears Waiting For An Opportunity?
A similar situation recently caused a small pullback before Bitcoin bounced back. For this new bearish signal to be confirmed, a couple of red candles need to be observed. If this scenario unfolds, it could indicate a short-term break in the current bullish trend.
Josh pointed out that Bitcoin recently cleared a significant liquidity level near $58,200, but there isn’t much liquidity left to target right now. Additionally, many traders remain bearish and are shorting the market, as evidenced by negative funding rates. If Bitcoin continues to rise, this could trigger a short squeeze, forcing those traders to buy back into the market.
Read Also: Three Important Factors Weighing Heavily on Bitcoin Price
Understanding the various factors influencing Bitcoin’s price is crucial for any investor. Keep an eye on the latest market trends and analyst insights to make informed decisions.
