Bitcoin
Bitcoin Price Flips Above $26,500: What’s Next?
Bitcoin price has been showing signs of a potential short-term recovery over the past few days and even tapped its highest level in two weeks, above $26,500. The premier cryptocurrency has gained nearly 2% over the past week, erasing some of the losses made in the previous days. Even so, the asset remains 9% below in the month to date. Bitcoin’s total market cap has climbed by more than 1% over the last day to $518 billion, while the total volume of BTC traded over the same period decreased by more than 9%.
Inflation Concerns
Like most major altcoins, Bitcoin price noted a slight bearish initial response to the US Consumer Price Index (CPI) data published on September 13. Data released by the Bureau of Labor Statistics (BLS) showed headline inflation by the CPI came in at 3.7%, ahead of the predicted 3.6% year-on-year and higher than July’s 3.2% rate. Annual core CPI, which excluded food and energy prices, decreased to 4.3% in August, in line with forecasts and down from July’s 4.7% reading.
The Producer Price Index (PPI) data released on Thursday suggested bearable levels of inflation following a monthly increase of 0.7% and an annual increase of 1.6% in August. The monthly reading was higher than the estimated 0.4% increase. The core PPI came in at 0.2% for the month, in line with analysts’ expectations.
Retail sales data also published on Thursday came in stronger than expected at 0.6% in August, far ahead of the anticipated 0.1%, suggesting consumer resilience.
The larger-than-expected jump in prices leaves room for a hawkish tone from the US Federal Reserve. The high inflation readings for August could impact the decision-making of the Federal Open Market Committee (FOMC) meeting slated for next week. Markets are pricing in a 97% chance of the Fed leaving rates unchanged in their meeting next week. Notably, higher interest rates could be on the cards in the remaining meetings for the year.
Bitcoin Price Prediction
Bitcoin price has been hovering above the crucial level of $26,000 over the past few days after a slightly bearish reaction to the high inflation figures. The initial reaction was expected to be bearish since higher inflation often translates to lower demand for riskier assets. Despite the consecutive 4-day rising streak, Bitcoin price remains below the 50-day and 200-day exponential moving averages, as seen on the daily chart.
Going forward, the Bitcoin price is likely to take a downturn in the immediate term, amid the skepticism in the crypto market. If this happens, Bitcoin price could potentially fall below the next support level of $25,825.60 and $25,300. Conversely, a breach above the major hurdle at $27,065 could initiate a fresh recovery rally, invalidating my cautiously bearish thesis.
BTC Price Chart
Bitcoin price was hovering around its highest level since August on Monday ahead of comments by Fed Chair Jerome Powell that could offer clues on future interest rate moves. The premier cryptocurrency hit an intraday high of $25,580, slightly above the bullish support level of $28,145, before pulling back. At the time of writing, Bitcoin was trading at $28,098.
Crypto Rally
Bitcoin price was in the green on Monday, building on previous gains after jumping more than 3% over the weekend. The asset’s total market cap has jumped by nearly 4% over the last day, while the total volume of BTC traded over the same period climbed by 192%. Major altcoins, including Ethereum, BNB, XRP, Solana, and Cardano, among others, have also edged higher.
Cryptocurrency prices started the new month on a positive note, improving market sentiment. The global crypto market cap has increased by 2% over the past 24 hours to $1.11 trillion, with the total crypto market volume up by 39.50% for the same period. Bitcoin’s total market cap has also nudged 0.77% higher to 49.57%.
The Crypto Fear and Greed Index, which measures the crypto sentiment by market participants, improved slightly to a fear level of 47, slightly higher than the fear level of 34 recorded last month. As such, the index suggests that risk appetite is rising, and a breach above the neutral level could increase the buying pressure.
While the immediate catalyst…
Bitcoin price has been relatively stable over the past few days after volatility picked up during the weekend, pushing the price lower by more than 3%. At the time of writing, the flagship cryptocurrency, Bitcoin, was trading at $26,255.55. As it continues to dominate the crypto market, ranking 1st, its total market capitalization slightly declined over the past day to $5.12 billion. Additionally, the total volume of BTC traded over the same period slumped by more than 32%.
Economic Concerns
Data published on Tuesday showed that the Conference Board Consumer Confidence Index declined in September to 103.0, down from a revised 108.7 in August. This was its lowest level since May 2023 and marked two consecutive months of decline. The Present Situation Index, which measures consumers’ assessment of current business and labor conditions, rose slightly to 147.1 from 146.7.
The Expectations Index, which measures the consumers’ near-term prospects for business, income, and labor market conditions, dipped to 73.7 in September, down from 83.3 in the prior month. The Expectations Index fell below the crucial level of 80, which signals a recession within the next year. Consumer fears of a looming recession also ticked higher in September amid the short-term economic contraction anticipated in the first half of 2024.
Focus will be on Fed Chair Jerome Powell’s speech on Thursday which is likely to add volatility and create a bearish environment for traders. As such,…
Bitcoin price jumped more than 3% on Monday, hitting its highest level since August 2023 ahead of the highly anticipated FOMC meeting. At press time, the premier cryptocurrency was trading 2.70% higher at $27,244.20. The digital asset has gained nearly 5% in the month to date and 64.71% in the year to date. Bitcoin’s total market cap has climbed by 3% over the past 24 hours to $531 billion, while the total volume of the asset traded over the same period increased by almost 100%.
Fundamentals
Bitcoin price was showing signs of recovery on Monday from the losses made in the last cryptocurrency market dip. Bitcoin flipped above the important level of $27,000, while Ethereum held above important support levels. The overall cryptocurrency market was in the green with the global crypto market cap up by 2% to $1.08 trillion for the day, while the total crypto market volume increased by more than 56%.
Even so, the Crypto Fear & Greed Index, which is a major measure of the crypto market sentiment by participants, was in a fear level of 38, almost like last week’s reading. This points to a continued decline in risk appetite by investors, which could prompt them to sell further.
Despite Monday’s bullish rally, interest rate decisions due later in the week may introduce downward pressure on cryptocurrencies. The US Federal Open Market Committee (FOMC) is slated to commence its…
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