Bitcoin’s price has rebounded, trading above $26,000, but it hasn’t been able to break through the resistance at $26,565. This stability comes after the release of the Consumer Price Index (CPI) data, which suggests a potential uptrend.
Bitcoin’s price has been steadily climbing from the support level of $25,000 earlier this week. One contributing factor to this positive momentum is the news of a new spot Bitcoin exchange-traded fund (ETF) application by Franklin Templeton Investments.
While this ETF didn’t provide enough momentum for Bitcoin’s price to break through the resistance at $26,565, it did improve the overall market sentiment and boost investor confidence.
This improved sentiment helped Bitcoin resist the pressure from high inflation in the US. The August CPI, released on Wednesday, showed a significant increase of 0.6% from the previous month, marking the largest jump in a year. On a yearly basis, it rose by 3.7%, which was higher than expected.
The core CPI, which excludes energy and food prices, also saw a 0.3% increase month-over-month, surpassing market expectations. On an annual basis, it was up by 4.3%. These figures indicate that the Federal Reserve’s efforts to combat inflation are facing ongoing challenges, especially with the consistent rise in oil prices over the past four months.
Bitcoin Price Holds Strong Amidst US Inflation – What’s Next?
Both Bitcoin and Ethereum have shown impressive resilience in the face of persistent inflation in the US in recent months. Investors’ reactions to spikes in the Consumer Price Index (CPI) have been subdued, with both short and long-term holders choosing to keep their positions as they await the upcoming halving in April 2024.
While Bitcoin’s price hasn’t surged past the resistance at $26,565, the disappointing inflation data hasn’t prompted a sell-off either. On Thursday, Bitcoin saw a 1.3% increase, reaching $26,239, and it appears to be holding steady above the short-term support at $26,000.
Bitcoin is currently positioned above several crucial support levels on the four-hour chart, including the descending trendline, the 100-day Exponential Moving Average (EMA) in blue, and the 50-day EMA in red. If it continues to maintain these levels, there’s potential for an upward trend toward $28,000 and $30,000 as traders seek to increase their Bitcoin holdings.
A positive sign comes from the Moving Average Convergence Divergence (MACD) indicators, which suggest that Bitcoin is gradually turning bullish. This optimism is further supported by the Supertrend, which is currently tracking the price and providing another buy signal for Bitcoin.
However, it’s essential to be cautious as long as Bitcoin remains below the resistance range at $26,565. This area is reinforced by the 200-day EMA in purple. A successful breakout and sustained hold above this level could potentially pave the way for Bitcoin to reach $28,000 and $30,000.
Is Bitcoin’s Price Heading Towards $100,000?
According to Davis Hui, the Vice President of Canaan, who spoke during a panel discussion in Singapore that brought together Avalon Bitcoin and Crypto Day, there’s potential for Bitcoin’s price to reach $100,000. This could happen because the supply of Bitcoin is expected to decrease significantly after the halving event in 2024.
The reduction in Bitcoin’s supply, combined with the entry of BlackRock into the cryptocurrency ecosystem, could be the primary drivers of the next bull market. BlackRock is a massive financial institution with $10 trillion in assets under management, which is five times more than the entire cryptocurrency market cap.
Hui believes that as BlackRock and other institutions enter the space, the demand for Bitcoin will increase, while its supply decreases due to the halving event. This shift in supply and demand dynamics could lead to a substantial increase in the price of Bitcoin.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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