Despite the release of the anticipated Consumer Price Index (CPI) rates, #bitcoin did not exhibit a positive reaction. Following the announcement, the price underwent a correction and has since been trading within a narrow range. Additionally, the market participants have been apprehensive due to the US government's sale of Silk Road Bitcoins, further contributing to a sense of fear in the market.
On The Daily Chart:
Bitcoin has been experiencing a period of consolidation for the past three weeks, with its price fluctuating between the $31,500 and $29,500 levels. Typically, consolidation following a bullish rally is seen as a preparation for the next upward move. However, the prolonged sideways movement suggests uncertain market sentiment.
As a result, it is advisable to consider the aforementioned price range as a no-trading zone and wait for a breakout before establishing potential targets. The presence of a high wick rejection on the daily chart indicates that there is still significant selling pressure, which could lead to an extended consolidation phase.
On The 4- Hour Chart:
Analyzing the 4-hour chart reveals that Bitcoin is currently consolidating within a range of $31,500 to $30,000. The $30,000 support zone has proven to be strong and resilient, holding the price from significant downward movements. Bitcoin attempted an upward move, aiming to surpass the $30,500 resistance. It successfully climbed above $30,750, but encountered selling pressure near the $31,000 resistance level. Unfortunately, Bitcoin's bullish momentum couldn't be sustained after the release of the US Consumer Price Index (CPI) data. As a result, the price of BTC is currently trading below $30,500, which increases the risk of a potential drop towards the $29,500 level.
According to Coingabbar Price Analysis, the market capitalization of #BTC stands at $588,788,304,077. The 24-hour trading volume is approximately $12,342,205,371.
KEY LEVELS :
RESISTANCE LEVEL : $30,600-$31,000
SUPPORT LEVEL : $29,900-$29,500
Disclaimer: Crypto is not regulated and can offer considerable risks. There may be no regulatory remedies available in the event of any losses resulting from price analysis. As a result, before engaging in any transactions involving crypto products, each investor must perform in-depth examination or seek independent advice.
