As an experienced analyst with over two decades in the financial markets under my belt, I have seen my fair share of market fluctuations and economic events that have shaped the course of various assets, including Bitcoin (BTC). This recent dip below $59,000 for BTC could be attributed to a perfect storm of factors – inflation concerns stemming from the Consumer Price Index Report and legal action taken by the SEC against Cumberland DRW.
On Thursdays, Bitcoin (BTC) saw a decrease, dipping beneath $59,000 as part of its ongoing correction. This dip might be connected to the unexpected surge in inflation, as indicated by the Consumer Price Index Report, which showed an increase of 0.2% in September.
Inflation increase and SEC action weigh on $BTC
Concerns about inflation could resurface for the U.S. Federal Reserve following the release of inflation data for September. According to the figures published on Thursday, Consumer Price Index (CPI) rose by 0.2%, whereas Core CPI climbed up by 0.3%.
The recent report on Bitcoin’s price drop by 3.6% could be attributed to this news, but the situation worsened when it was disclosed that the Securities and Exchange Commission (SEC) intends to file a lawsuit against noteworthy market player Cumberland DRW, for accusations of trading alleged crypto securities.
The response from Cumberland DRW on its X account was a firm counter to the SEC’s accusations:
$BTC price begins a recovery
Regardless of initial negative perceptions, Bitcoin’s price rebounded significantly following its drop below $59,000. At present, it is over 3% higher than that point, as depicted in the chart above. Notably, Bitcoin managed to stay above $59,680 and even surpassed the significant $60,000 horizontal line.
The current price range might soon burst upward if it breaks successfully. This potential breakout, combined with the optimistic upward signal from the Stochastic RSI, could facilitate further price increase.
Initially, if Bitcoin prices are to rise, a new peak might be reached around $64,550, followed by another potential peak at $66,500. However, for a significant change in momentum, Bitcoin bulls should aim to surpass the previous high of $70,000 again.
$BTC $61,000 support level still holding
Looking at the broader weekly chart, it’s clear that even though there was a recent drop, Bitcoin’s price has been able to maintain the crucial $61,000 support level. The fact that the candlestick’s wick dipped below this level indicates that the bulls have been actively buying and pushing the price back up.
As a crypto investor, I’ve been closely watching the chart, and it seems the Relative Strength Indicator (RSI) is showing a significant shift. Currently, the RSI line is heading south, but if Bitcoin’s recovery maintains its momentum, this trend could reverse by the end of this week. Such a change would suggest that buyers are re-entering the market, potentially signaling a positive shift in the market dynamics.
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2024-10-11 13:05