CPI Data Hits 6.4%, But Bitcoin Price Might Soon Hit $25K
CPI for January hits 6.4% which is higher than what was expected
However, Bitcoin price still holds on to bull trend
Recently, during the FOMC meeting, the Federal Reserve had a soft approach towards interest rate hike as there was only 0.25% interest rate hike instead of 0.50%. Today the traders and investors had hoped that there will be a decreased inflation rate in January.
This positive anticipation had resulted in a slight market recovery as the world’s first cryptocurrency, Bitcoin price had regained its lost $22,000 area. Hence, Bitcoin’s reverse price action influenced other cryptocurrencies as well.
On the contrary, as per the reports, the CPI data for January has hit 6.4% whereas the expected data was 6.2%. Also the JP Morgan analyst had claimed that even if the crypto market rallies after positive CPI data the rally won’t last for a long time. If the market turns out to be as per JP Morgan analysis, it will most probably be another buy the news event.
Bitcoin Trend Reversal Ahead ?
Just before the Consumer Price Index (CPI) data for January month was yet to be released, the crypto market was slightly on an upward movement. Furthermore, due to the expected positive inflation data, even the US Dollar Index (DXY) along with S&P 500 and Nasdaq are trading positive.
Now, the higher than expected CPI data has resulted in Bitcoin fluttering between $21,900 and $22,000 area. However, as per the data Bitcoin is now making an effort to form a bear trap pattern. A bear trap pattern is nothing but a downward movement with an overall bullish move. If this turns out to be true then Bitcoin might soon move towards the $25,000 mark.
Overall, the inflation data is still positive which could result in Bitcoin’s reverse action. If Bitcoin has to move towards its positive trend, then the Bitcoin price has to cross its first major resistance of $22,500 and then $23,000 level. At the time of writing, Bitcoin is selling at $21,994 after a surge of 2.16% in the last 24hrs.
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