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Bitcoin Price Prediction as US Core Inflation Rate is Announced – Bullish or Bearish?

Arslan Butt
Last updated: | 3 min read
Bitcoin Price Prediction
Bitcoin Price Prediction

Bitcoin (BTC/USD) is currently trading at $69,615, with analysts closely watching the upcoming release of the US Core Inflation Rate. This economic indicator is pivotal for shaping market expectations and could significantly influence Bitcoin’s trajectory.

Investors are keen to understand how the inflation data will impact Federal Reserve policies, which in turn will affect the US dollar and potentially drive Bitcoin prices. This analysis explores whether the latest inflation figures will support a bullish or bearish Bitcoin price prediction.

The US Core Inflation Rate is Announced

Bitcoin (BTC/USD) is currently trading at $69,613, showing potential for further bullish momentum. In addition to these technical factors, upcoming economic data releases could significantly impact Bitcoin’s price.

  • At 12:30 PM, the United States will release its Core Consumer Price Index (CPI) month-over-month data, expected to rise by 0.2%, down from 0.3% previously.
  • The CPI month-over-month is forecasted to remain flat at 0.0%, compared to the previous 0.1%.
  • The year-over-year CPI is anticipated to increase by 3.3%, slightly below the previous 3.4%.

These inflation figures are critical as they influence Federal Reserve policy decisions. Lower-than-expected inflation data could lead to a more dovish stance from the Fed, potentially weakening the US dollar.

A weaker dollar typically boosts Bitcoin prices, making it more attractive to investors seeking an alternative store of value.

Conversely, higher inflation readings could prompt the Fed to maintain or increase interest rates, potentially strengthening the dollar and putting downward pressure on Bitcoin.

Federal Open Market Committee (FOMC)

The market is eagerly awaiting the Federal Open Market Committee (FOMC) meeting and the Federal Reserve’s announcements at 18:00.

Key events include the Federal Funds Rate decision, expected to remain at 5.50%, the FOMC Economic Projections, and the FOMC Statement.

These events are critical as they will provide insights into the Fed’s future monetary policy direction. A dovish stance from the Fed, possibly indicating a pause or slowdown in interest rate hikes, could weaken the US dollar.

This scenario is generally bullish for Bitcoin, as a weaker dollar makes Bitcoin more attractive as an alternative asset.

On the other hand, if the Fed signals a more hawkish stance, maintaining or increasing the current rate hike pace, the dollar could strengthen, potentially putting downward pressure on Bitcoin prices.

The upcoming FOMC meeting and Fed announcements will be pivotal. A dovish outcome could boost Bitcoin, while a hawkish stance could pose challenges.

Bitcoin Price Prediction

Bitcoin (BTC/USD) is currently trading at $69,613, showing potential for further bullish momentum, signalling a bullish Bitcoin price prediction. The 4-hour chart indicates a significant breakout above the downward trendline at $69,500, supported by a bullish engulfing candle.

This technical formation suggests that the market may see more upside movement in the near term.

Key price levels to watch include a pivot point at $69,500. Immediate resistance is noted at $70,099, with subsequent resistance levels at $71,707 and $72,921. These levels are crucial for determining Bitcoin’s potential upward trajectory.

On the downside, immediate support is located at $68,472, followed by $67,152 and $65,955. These support levels will be vital in case of a bearish correction.

Bitcoin Price Prediction
Bitcoin Price Prediction

The technical indicators provide further insight into Bitcoin’s current market sentiment.

The Relative Strength Index (RSI) stands at 57.44, indicating neutral momentum, while the 50-day Exponential Moving Average (EMA) is at $68,983. Trading above this EMA reinforces the bullish outlook for Bitcoin.

In conclusion, Bitcoin is poised for a potential bullish run if it can sustain above the $69,500 pivot point.

A breakout above the $70,000 level could open the door to higher targets at $71,707 and $72,921. However, traders should watch for support at $68,472 to manage downside risks.

Maintaining a bullish bias, Bitcoin could see further gains if these technical levels hold.

Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.