- Recent information launched reveals that the CPI has remained comparatively fixed during the last two months.
- The 9 MA line has crossed beneath the 20 MA line on the month-to-month chart for BTC for the primary time in historical past.
- Given the relative place of the 9 and 20 MA strains, BTC might haven’t but established its backside.
Recent information from the US Bureau of Labor and Statistics reveals that the Consumer Price Index (CPI) has remained comparatively constant during the last 2 months.
CPI line chart (Source: Investing.com)
As seen from the road chart above, the US CPI has leveled off considerably during the last two months after being on an excessive optimistic slope since June 2020. In this era, the CPI has risen from 0.1 to eight.7. In the final two months, the CPI has solely elevated by 0.1. With this being the case, is Bitcoin (BTC) lastly establishing its backside as inflation could also be leveling off?
Recently, BTC has damaged above the $20,000 degree in response to CoinMarketCap. Its worth now stands at round $20,107.97.
BTC month-to-month chart (Source: CoinMarketCap)
Looking on the day by day chart for BTC, the value of BTC has reached a serious degree on the month-to-month chart across the $20,000 degree. This is after the value of BTC closed the earlier months in losses because the CPI continued to rise all through these months.
As a results of the continued worth fall, the 9 Moving Average (MA) has crossed beneath the 20 Moving Average (MA) for the primary time in BTC’s historical past. This is a bearish flag that means that BTC’s worth might proceed to fall.
With this being the case, the $20,000 degree might not have the ability to maintain off the promoting stress seen on the month-to-month chart for for much longer. It can be truthful to say that the BTC has established its backside if the 9 MA and 20 MA strains had been positioned otherwise, with the 9 MA positioned above the 20 MA.
Disclaimer: The views and opinions expressed on this article are solely the writer’s and don’t essentially mirror the views of CQ. No info on this article must be interpreted as funding recommendation. CQ encourages all customers to do their very own analysis earlier than investing in cryptocurrencies.