With the upcoming release of the US October CPI data, Bitcoin is expected to rebound in the short term, and market sentiment is gradually moving in an optimistic direction. However, the renewed rumors about ETFs have raised concerns, and investors are questioning whether the market is in a technical dilemma.
As of the time of writing, Bitcoin is priced at around $36,700. Affected by yesterday's wait-and-see sentiment, the market began to fluctuate and fall, but rebounded after reaching $36,220.
Technical analysis:
The 1-hour Bollinger Band is currently on a downward trend due to yesterday's volatile decline, with an amplitude of $700. The current price is at the upper track of the 1-hour Bollinger Band. It is worth noting that yesterday's decline was supported by the MA200 moving average, which rebounded after successfully touching it. In the short term, MA200 is still an effective support. If tonight's CPI data fails to push the market up, it may continue to fluctuate downward. At present, the MA7-day moving average has tended to MA30, and the technical upward signal may be released after the market stabilizes.
The 4-hour Bollinger Band shows that yesterday's decline has completely broken through the 4-hour lower track, and the current price is at the 4-hour Bollinger Band lower track, with an amplitude of $800. Although the 4-hour MA7-day moving average provides slight support, if the price cannot stabilize upward, there is a risk of continued correction in the future.
The daily Bollinger Bands still maintain a high-level oscillation trend. Today's rise is the only positive line in the past four days. If it can close positive at night, it will be a good signal, of course, it depends on whether the market cooperates. At present, the daily Bollinger Bands have tightened to $4,200, and the overall trend is still oscillating upward. The daily moving average still gives a bullish signal.
Funding changes:
Due to the continued influence of yesterday's wait-and-see sentiment, the market capitalization began to decrease in the early morning, mainly from the United States. However, the Asian market is still optimistic. Despite the wait-and-see sentiment, funds in the Asian market are actively entering the market. Today's inflow of funds offset the outflow of funds from the United States, but the overall market capitalization is still reduced, indicating that more funds choose to leave the market and wait and see. The market activity has obviously decreased this week. Funds from the US market flowed in over the weekend, but the unstable factors on Monday caused funds to leave the market one after another.
Crypto market trends:
Bitcoin's share has slightly increased after the outflow of funds, and Ethereum still occupies a large proportion of the market, especially the rise of Ethereum last night. Ethereum's rise has attracted some attention, but historical trends show that this may indicate that Bitcoin is about to peak and the market may face a correction.
News analysis:
Tonight, the US October CPI data has attracted much attention. Although the official and market expectations are in line with 3.3%, the actual data may not be as optimistic as expected. The market is in a wait-and-see mood and it is impossible to determine the data trend. The US stock market fell first and then rebounded, and the overall instability shows that it is difficult for traders to judge the trend. For the crypto market, CPI data has an impact on market volatility, and an unstable market may be unfavorable for the entry of traditional financial capital.
ETF hype:
Since the ETF hype began on October 16, each rumor has aroused market enthusiasm, but has not substantially helped the advancement of ETF applications. The recent rumors about XRP triggered a short-term rise, but were subsequently debunked. This false information may increase the difficulty of ETF approval. Since the hype began in October, frequent false news may make the SEC more cautious about the market.
Comprehensive analysis:
The technical side shows a short-term rebound signal, but we need to pay attention to the impact of CPI data. The capital flow shows that the market is still in a wait-and-see mood. The overall market trend still depends on CPI data and ETF speculation. Investors should remain cautious, pay attention to market dynamics, and reasonably control positions and risks.
