Bitcoin surged to a nine-month high as investors got the expected CPI data that bolstered Federal Reserve will slow the interest rate hike.
Yesterday, after the announcement of the Consumer Price Index (CPI), Bitcoin jumped to $26K. The CPI rose 0.4% in February, which was the expectation of the market. Dow Jones and Nasdaq also showed signs of reversal.
Bitcoin surged over 15% within a few hours of the CPI data announcement in the US. The highly anticipated FOMC meeting focusing on Federal Reserves’ next interest rate hike will kick off next week. Now the market is expecting another 25 basis points interest rate in comparison with the 50 basis point rate hike that the market has speculated.
Besides that, the collapse of reputed banks and regional banks in the US will lead to smaller rate hikes. However, Federal Reserve has stepped in to boost the confidence of depositors. Such a US banking collapse brings the confidence of crypto investors because people are now searching for permissionless and autonomous coins such as Bitcoin to store their hard-earned money. Many experts also believe that confidence in the banking sector has been reduced in such scenarios, and people are searching for alternative assets like gold and Bitcoin.
If you are also interested in investing in BTC, please read our price analysis.
BTC crossed the Bollinger Band yesterday, and now the price is trading in the upper Bollinger Band above the 50 days Moving Average, which suggests bullishness for the short term. Many crypto experts may treat it as a bearish reversal sign, but RSI is strong above 60, which does not suggest a short-term reversal.
According to our predictions for Bitcoin, you can expect a reversal if the BTC price forms a bearish engulfing candle. Otherwise, it is preparing to break the resistance around $26,500.
Besides that, BTC has received higher volume in the last three days, which suggests investors’ confidence is back in Bitcoin, especially after the shutdown of our traditional financial institutions in the US.
The price of Bitcoin may take support around $23K, but BTC is still bullish even long-term. If you want to invest in Bitcoin, consider a price of around $23K to enter the crypto market and get the benefits in the next five years.