Bitcoin Price Outlook: Will April CPI reduce inflation propel BTC to $70K?
Bitcoin price is up over 5% to $65,000, latest measured on May 6.
Inflation fell to 3.4% in April from 3.5% in March.
Core CPI was 3.6% vs. 3.8% last month, meeting forecasts and favorable for BTC.
Bitcoin (BTC) rose 5% on Wednesday, with the American session outperforming the Asian session for the first time in a while. US inflation announcement created tailwinds.
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Bitcoin rose Wednesday following the US Bureau of Labor Statistics' April inflation report.
In April, the Consumer Price Index fell from 3.5% to 3.4% annually, according to the study. This meets market expectations. In the same time, the annual core CPI fell from 3.8% to 3.6%.
According to economist and global strategist Peter Schiff, all economic data suggests higher CPI gains in the future, and investors hope this serves as a justification for Fed rate cuts.
Bitcoin price rose due to speculation and market mood. Investors see softening inflation as a hint that central banks may keep monetary policy slack, which might boost Bitcoin.
$65,500 market structure modification
Bitcoin price has a one-day god candle. This big green candle indicates strong purchasing pressure, indicating a bullish trend. After a series of lower highs, the rebound might shift market structure.
Bitcoin must break and close over $65,500 on the one-day time period. RSI lows are also rising, indicating bullish momentum. This, together with the Awesome Oscillator (AO), whose histogram bars are green and moving upward, implies bullish emotion.
The DXY Compare indicator continues to fall, indicating that investors are more prepared to buy risky assets like Bitcoin when the US dollar is less shaky.
Bitcoin price may fall if the $65,500 barrier is rejected. A drop below $60,630 might trigger panic selling and bring BTC below $58,000 or perhaps the May 1 lows of $56,552. This would be approximately 13% below present levels.
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