As inflation continues to make headlines, many investors are turning to cryptocurrencies like Bitcoin (BTC) to protect their assets from the eroding effects of inflation. However, BTC’s recent price movement and momentum appear weak, leaving many wondering what’s next for the world’s most popular digital currency.
CPI Rates and Bitcoin’s Price Movement
The latest CPI report revealed a rate of 5.0%, lower than what many had anticipated at 5.2%. Despite this, BTC is having difficulty consolidating above the $30,000 mark, with its current price movement and momentum appearing weak.
Core CPI and the Possibility of Inflation
While the CPI rate was lower than expected, the Core CPI, which excludes food and energy costs, has increased from the previous month. This suggests that inflation may not be easing as quickly as anticipated, which could impact the future of BTC.
Michael Van de Poppe’s Analysis
Michael Van de Poppe, a prominent crypto analyst, recently highlighted the impressive performance of BTC in comparison to other assets in the industry. Van de Poppe suggested that BTC’s strength could continue to increase if there is a successful breakout and bullish continuation following a retest of the range high.
The Critical Juncture of BTC.D Chart
Van de Poppe also noted that BTC.D chart on a 2-day time frame is at a critical juncture. If the market surpasses the range high and then retreats into the range, it may present opportunities for altcoins to gain momentum.
The Support Level of BTC’s Price
According to Van de Poppe’s analysis, a drop in the price of Bitcoin within the range of $28,400 to $28,800 could positively impact the overall price movement of the cryptocurrency. This particular zone may serve as a robust support level, as it was previously a significant obstacle to overcome but has now transformed into a crucial threshold for BTC.
Bitcoin’s Current Position
At the time of writing, BTC is trading at $29,950, experiencing a slight decline of 0.8% over the past 24 hours. BTC’s future remains uncertain, with a possible pullback towards the $28,600 zone, which could either help regain its bullish momentum or lead to a further retracement towards the $27,200 zone.
The recent lower-than-expected CPI rates may have provided some relief to investors, but the Core CPI’s increase suggests that inflation concerns may persist. As BTC navigates through uncertain territory, investors must monitor its price movement and momentum closely. While the support level and BTC’s strength could be positive indicators, its future remains unclear.