Home Crypto News 24 Bullish Or Bearish For Bitcoin? CPI Comes In At 6.5%

Bullish Or Bearish For Bitcoin? CPI Comes In At 6.5%


For the Bitcoin price, the course for the rest of January may have been set today. The question was: Will Bitcoin continue its mini-bull run or will there be a correction? This was decided by today’s Consumer Price Index (CPI) release in the US at 8:30 am EST.

The baseline was relatively clear. Most estimates agreed that 6.5% is the magic line that will decide whether it is a bull or bear market in the short term. If the figure is 6.3% or lower, there will be a bull run as the US central bank projections from the last FOMC are no longer credible and will be thrown overboard.

At 6.3% to 6.5%, the market is likely to celebrate with restraint, although this may already be priced in. At 6.5% to 7.1%, there will be a sell-off.

And the estimates were spot on. The CPI came in at 6.5%

JP Morgan had released its own game plan and called for a 65% chance that CPI will be between 6.4% and 6.6%, which could trigger a 1.5% to 2% upside move in the S&P 500, according to the banking giant.

The two less likely scenarios, according to JP Morgan, are that CPI falls below 6.4% (20% chance), which could mean a 3% to 3.5% pump for the S&P 500. In the worst-case scenario, CPI is above 6.6% (1,5%), which could mean a 2.5% to 3.5% downside for the S&P 500, according to JP Morgan.

As Bitcoin trades with a higher beta, the CPI print today should result in an even more volatile crypto market. It should also be taken into account that the BTC price has already experienced a strong run in the run-up to the release; this makes the market all the more sensitive to the CPI figure.

Even if the value is below the previous month at 7.1%, a significant decline will be necessary to please the high expectations of the market.

Bitcoin Price – Levels To Watch Today

A look at the 1-hour chart reveals that Bitcoin investors have front-ran the release of the supposedly positive CPI data. Within the last 24 hours, the BTC price has risen by 4.2% and was at $18,196 at press time.

With that, the Bitcoin price is facing upside resistance at $18,238. If the data is favorable, it should be an easy task for Bitcoin to break through this resistance.  If the CPI is above 6.5%, the bulls will have to defend the support at $17,609 first. However, the even more important level of support for Bitcoin is at $17,322.

A look at the 1-day chart reveals a similar picture. On the upside, the range between $18.238 and $18.382 is likely to be crucial in determining whether the Bitcoin price will soon trade back above $19,000, which is roughly where the next key resistance zone awaits.

Bitcoin price chart from TradingView.com

#Bullish #Bearish #Bitcoin #CPI

Previous articleClimate change: UAE names oil chief to lead COP28 talks
Next articleकेंद्रीय विदेश मंत्री एस जयशंकर बोले, शिक्षा और स्वास्थ्य सेवा केंद्र के रूप में उभरा भारत


Please enter your comment!
Please enter your name here