Bitcoin — Why I Remain Cautious!

Yesterday's inflation data was slightly lower than expected.

In general, this was a good sign. Lower inflation paves the way for rate cuts.

As background, unlike many other central banks, the FED has two objectives: managing the inflation rate and a prosperous economy. Typically, it requires a balanced approach. Since inflation seems under control, lower interest rates will help stimulate the worrying economy.

Once the numbers were published, Bitcoin turned green immediately. However, 58k was the resistance once again. However, the bullish signs are increasing—undoubtedly.

At that point, I can repeat my cautiousness: As promising as the current price action looks, it is essential for Bitcoin to

1) close above 58k on the daily chart and
2) subsequently, above 60k

Until this happens, the bearish scenario of another dip to the channel's lower trendline (52k) will be valid. Especially 60k will be a huge hurdle; a decisive rejection would not surprise me.