In this daily bitcoin (BTC) With updates from Crypto Insiders, we have regularly indicated in recent days that the publication of the inflation figures in the US could cause a lot of volatility in the financial markets, especially if it turns out higher than expected. That turned out to be exactly what happened yesterday afternoon. The stock markets fell sharply for a while and that panic spread to the cryptocurrency-market.
From consumer price index (CPI) stands at a whopping 7.5%, the highest since 1982. Despite this, the damage to bitcoin remained minor. Most investors are still holding onto their BTC tightly and a few bought the dip right away. As a result, the price was able to experience a strong bounce to make. However, it didn’t stop there.
Bitcoin makes a big bounce, but then falls anyway
From bitcoin price was on the rise before the CPI release and gradually pushed through the resistance around USD 45,000. Then the numbers came out and bitcoin plunged from $45,200 to $43,300, down 4.2% in less than an hour.
Bitcoin immediately made a strong bounce and the price shot back to $45,250. Bitcoin then continued to climb a little further, reaching a high of about $45,700, its highest price in more than five weeks.
However, bitcoin then started to fall sharply. The price initially appeared to decouple further from the equity markets, but the correlation then increased again. That may have had to do with the Federal Reserve, which spoke shortly after publication of a possible earlier hike in interest rates to curb inflation.
I was already getting excited to be able to tweet about how nicely #Bitcoin is holding up vs. equities. But here we are and it didn’t really hold up. Shows how important it is during these days to wait for it to play out… $ BTC pic.twitter.com/NG73TDjU5e
– Jan Wüstenfeld (@JanWues) February 10, 2022
Bitcoin fell about 6% to $42,900 during last night and last night. Still, the $43,000, a crucial level, seems support to stand. Bitcoin tops out at $43,500 at the time of writing Binance and €38,150 on Battle.
Bitcoin Analysts Bullish, But Volatility May Be Coming
The Fed will hold a closed meeting on February 14. Inflation figures are turning out higher than expected, prompting speculation that the US central bank may choose to raise interest rates sooner. That can again cause a lot of volatility and perhaps even bearish unpack for bitcoin. Nevertheless, the on-chain data still looks promising.
Price and indicator action suggest we’re at 1 of 2 comparable positions in 2020, both suggest the end of a correction and not the start of one. pic.twitter.com/Xc261r0zw6
— Rickus (@rickus_trades) February 11, 2022
For now, it’s a good sign that bitcoin is above USD 43,000 and the 50 days exponential moving average (EMA) holds out. Bitcoin is still in a trend of higher highs in higher lows. Yet a pullback to $38,000-$40,000 still possible, but there should be a lot of support right now. However, if bitcoin breaks through $45,000, there will still be a lot of resistance between $46,000 and $50,000.
#Bitcoin battle trenches for the Bulls and the Bears:
🟢If you are a Bull you want to see the lower range hold as support
🔴If you are a Bear you want to see the upper range hold as resistance
Nothing to sweat over until one of these ranges fall: pic.twitter.com/8d9uaCZ7ra
— Matthew Hyland (@MatthewHyland_) February 11, 2022
#Bitcoin doesn’t look bearish…
It looks programmed. 🧑💻🚀 pic.twitter.com/bi7XfsNg8v– ₿lake (@blaakke) February 10, 2022
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