Here’s How Bitcoin Price Reacted to February’s CPI Report

Bitcoin Price: Bitcoin, the leading digital asset by market cap, is in price discovery mode, marking its new all-time high of $72,850 on Monday. The BTC price has been riding an aggressive rally since late january when the price rebounded from $38600. The positive upswing has uplifted the coin 86% to reach the current trading price of $71590. With the rising trading volume, the coin price breached the neckline resistance of the cup and handle pattern, signaling the potential for further growth.

Also Read: Breaking: US CPI Comes Hotter at 3.2%, Bitcoin Price to Fall?

Inflation Rises to 3.2%: Bitcoin Reacts with Volatility

On Tuesday, the US Bureau of Labor Statistics (BLS) disclosed the annual inflation rate in the US, as indicated by the Consumer Price Index (CPI), climbed to 3.2% in February, up from 3.1% in January. 

The Core CPI, which removes the fluctuating costs of food and energy, reported a year-on-year increase of 3.8% for the same month, slightly below January’s 3.9% rise but surpassing the anticipated 3.7%.

Amid the release, Bitcoin witnessed a short surge in volatility as price hit a high of $72628 only to retrace back to $71683. Furthermore, a recent report from Lookonchain reveals a whale withdrew 2,050 BTC ($147.67M) from Kraken 10 hours ago, adding to a total of 10,340 BTC ($742.98M) since March 1. 

This whale withdrew 2,050 $BTC($147.67M) from #Kraken again 10 hours ago.

And he has withdrawn 10,340 $BTC ($742.98M) from #Kraken since Mar 1. pic.twitter.com/XHk0X6wl6f

— Lookonchain (@lookonchain) March 12, 2024

This accumulation at record levels suggests that savvy investors believe Bitcoin is unlikely to reach an immediate peak.

Also Read: Michael Saylor Says Bitcoin Will “Eat” Gold, Emerging as Top Asset, Price Surges Over $72k

BTC Breakout from Rounding Bottom Signals Major Recovery

An analysis of the daily time frame shows the Bitcoin price developed a bullish reversal pattern called the rounding bottom. This chart pattern often hints at the maturity of a downtrend and a renewed recovery trendline in the market. On March 11th, the BTC price gave a bullish breakout from the pattern neckline resistance of $69275.

If the pattern holds true, the BTC price should chase the theoretical target of $123000.

Technical Indicator 

• Pivot Levels: As per the recent price movement, the pivot level projects potential resistances at $77700, followed by $91500.
• Average Directional Index: The RSI slope(78%) close to the overbought region indicates the buyers may need occasional pullback to regain strength.

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Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.