Bitcoin price hikes by +5% after softer-than-expected U.S CPI report

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    U.S CPI data rose to 0.3%, slightly below the expected 0.4% in April.
    Market saw some relief after April’s slow inflation reading, with BTC jumping by +5%

As a researcher with experience in analyzing financial markets and cryptocurrencies, I find the recent U.S CPI data and its impact on Bitcoin intriguing. According to the latest report from the U.S Bureau of Labor Statistics (BLS), the Consumer Price Index (CPI) rose by 0.3% in April, which was slightly below market expectations of a 0.4% increase.

In April, the Consumer Price Index (CPI) data from the United States showed that inflation rates remained relatively stable compared to the previous month, bringing some easing to markets that are sensitive to economic risk, such as Bitcoin [BTC].

Based on the latest report from the U.S. Bureau of Labor Statistics (BLS), the Consumer Price Index (CPI) increased by 0.3% in April. This figure came in slightly below the anticipated rise of 0.4%. The CPI is a significant indicator for Federal Reserve interest rate determinations and measures the cost changes for items and services that consumers purchase to evaluate inflation trends.

As a researcher examining economic data, I discovered that inflation showed a modest decrease in April according to recent reports. This development brought relief to markets, which had experienced subdued price fluctuations for some time.

Bitcoin swings, eyes the short-term supply at $65K

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Recently, AMBCrypto discussed how upcoming Fed events and larger market trends could influence Bitcoin’s price movement. The decreased Consumer Price Index (CPI) figure fueled optimism in the financial markets, with Bitcoin taking the front seat in the risk-on assets surge.

As an analyst, I’ve observed an impressive rally of more than 5% in the price of Bitcoin, breaking through its short-term resistance level at $63,000 on the chart. Currently, it is trading above this level, with a value exceeding $65,000.

If the upcoming move causes Bitcoin’s price to close above a specific level on lower timeframes (such as the 4-hour chart), it could potentially signal a shift from bearish to bullish market structure for Bitcoin. However, it is important to keep in mind that the overall trend on higher timeframes (like the daily or weekly charts) remains negative until Bitcoin manages to break above its key resistance level of $66,000.

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As a pseudonymous crypto researcher and trader, known as Skew, I have observed a comparable prediction following the release of the Consumer Price Index (CPI) data. Upon Bitcoin’s price surge beyond $63,000, I took note.

“The current supply level hovers around $65,000. Given the narrow range of bids, it is essential for spot takers to actively participate in the market to align with the ongoing bullish trend in risk assets.”

Additionally, the trader marked $63k and $63.5k as key price levels for a downside move. 

Wait and watch

Although the Consumer Price Index (CPI) showed a slight decrease, the Federal Reserve might choose to postpone reducing interest rates until they have more evidence of a sluggish inflation trend.

Based on the current behavior of Bitcoin’s (BTC) price movement being heavily influenced by Federal Reserve interest rate expectations, it is likely that a definitive price trend will emerge following the Fed’s meeting in June. However, prior to this event, Bitcoin’s price may continue to fluctuate between $60,000 and $70,000, exhibiting volatile and uncertain price action.

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2024-05-16 10:15