Bitcoin (BTC) is holding on to the key $26,800 mark ahead of the Wall Street open on October 12, as US inflation data continues to beat expectations.
BTC price reacts to CPI beating expectations
Data from Cointelegraph Markets Pro and TradingView It showed that BTC price fluctuations remained muted after the two-week lows seen the previous day.
This came thanks to US macroeconomic data, which revealed that inflation continues to surprise markets.
During the day, the September reading of the Consumer Price Index (CPI) reinforced this trend, reaching 3.7% y/y versus 3.6% expected. Less food and energy, the outcome was 4.1%, which is in line with expectations.
The all-item index rose 3.7 percent in the 12 months ending in September, the same increase as in the 12 months ending in August, an official said. press release The US Bureau of Labor Statistics confirmed.
“The index for all items except food and energy rose 4.1 percent over the past 12 months. The energy index fell 0.5 percent during the 12 months ending in September, and the food index rose 3.7 percent over the past year.
In Reaction, the source of the financial commentary, Al Qubaisi’s message underscored the tight spot in which monetary policy – and the Federal Reserve – now find themselves.
“We have PCE and PPI inflation rising with CPI inflation above expectations.” books On X.
“How can the Fed cut interest rates anytime soon?”
The concept of “higher for longer” when it comes to US interest rates is widely expected to put pressure on risk assets, including cryptocurrencies.
After the CPI, the odds of the Fed raising interest rates further at the next Federal Open Market Committee (FOMC) meeting on November 1 were slim to none at just 7.4% according to data from CME Group. Feedwatch tool.
Analyst on Bitcoin vs Macro: “Bad = Bad”
Turning to Bitcoin itself, already cautious market participants had no reason to expect a return to the upside in the short term.
Related: Is there any doubt that BTC prices will rise? Young Bitcoin supply reflects 2022 bear market
Popular trader Skew continued to point to the $26,800 area as the area where the bulls flip to support.
$ Bitcoin 4H
CPI Later today we will see how the LTF structure develops
The clock demand zone clears here and $26.8K remains important to control
If buyers can reclaim and hold $26.8K, they will be looking for some sort of 4H EMA trend test or recovery
Stay even more careful with confirmations pic.twitter.com/58BKDZyLBj
– Δ skew (@52kskew) October 12, 2023
Material Resource Monitoring indicators revealed a lack of bidding liquidity well above $24,750, a key level over the past two quarters.
1. Supply liquidity declined to LL at $24,750
2. Yellow discontinued its TWAP selling strategy
3. Purple whales were sold pic.twitter.com/4cant18F4o
— Physical Indicators (@MI_Algos) October 12, 2023
“It has been a long time since we discussed whether good=good or good=bad for the BTC price,” said co-founder Keith Allan. He added In commentary on the macro side before the CPI.
“I’m not an economist, but based on yesterday’s reports, the overall economic outlook and geopolitical tensions, I’ll choose bad = bad.”
Continuing, trading firm QCP Capital described a “relentless” downward trajectory for Bitcoin and the largest altcoin Ethereum (ETH) to come despite various potential bullish factors in the fourth quarter.
“We hope that the relatively weak performance of BTC and ETH to the upside now also means their betas are lower to the downside as well, if CPI comes in stronger than expected,” she wrote in a note. Market update Earlier today.
“Otherwise, we continue to look at key levels of 25-26K on the downside, and 29-30K on the upside as crucial levels to determine the next trend.”
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.