- Recent knowledge launched reveals that the CPI has remained comparatively fixed over the past two months.
- The 9 MA line has crossed beneath the 20 MA line on the month-to-month chart for BTC for the primary time in historical past.
- Given the relative place of the 9 and 20 MA traces, BTC might haven’t but established its backside.
Recent knowledge from the US Bureau of Labor and Statistics reveals that the Consumer Price Index (CPI) has remained comparatively constant over the past 2 months.
As seen from the road chart above, the US CPI has leveled off considerably over the past two months after being on an excessive constructive slope since June 2020. In this era, the CPI has risen from 0.1 to eight.7. In the final two months, the CPI has solely elevated by 0.1. With this being the case, is Bitcoin (BTC) lastly establishing its backside as inflation could also be leveling off?
Recently, BTC has damaged above the $20,000 stage in response to CoinMarketCap. Its value now stands at round $20,107.97.
Looking on the each day chart for BTC, the worth of BTC has reached a significant stage on the month-to-month chart across the $20,000 stage. This is after the worth of BTC closed the earlier months in losses as the CPI continued to rise all through these months.
As a results of the continued value fall, the 9 Moving Average (MA) has crossed beneath the 20 Moving Average (MA) for the primary time in BTC’s historical past. This is a bearish flag that implies that BTC’s value might proceed to fall.
With this being the case, the $20,000 stage might not be capable of maintain off the promoting stress seen on the month-to-month chart for for much longer. It can be honest to say that the BTC has established its backside if the 9 MA and 20 MA traces had been positioned in another way, with the 9 MA positioned above the 20 MA.
Disclaimer: The views and opinions expressed on this article are solely the writer’s and don’t essentially replicate the views of koinaly. No data on this article needs to be interpreted as funding recommendation. koinaly encourages all customers to do their very own analysis earlier than investing in cryptocurrencies.