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Crypto Prices Dump, Pump on CPI Day – Elon Musk’s $20k Bitcoin Call in Play

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James Spillane

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James Spillane

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Last updated:

October 19, 2023

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After first pumping and dumping on CPI day – hitting a daily low of $18,000 – the Bitcoin price then quickly pumped back to around the $19,000 level after a strong bounce.

CPI data came in hot – inflation rose more than expected, sparking fears of more Fed rate hikes to come. Read our full market watch update here.

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CPI Day Bitcoin Recovery

The Bitcoin price is now only down approximately 1% or less in the past day, attempting to reclaim the four hour trendline it lost earlier today when traders derisked before the CPI print.

Bitcoin is also currently outperforming stocks in terms of relative strength. The S&P 500 hit a low of 3,491 on CPI day before also recovering well – bouncing as high as 3,660.

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New Elon Musk Bitcoin Price Prediction

Elon Musk also tweeted one word late last night – ‘$20,000’ – while he posted no follow up tweet as yet, it suggests the billionaire is expecting the Bitcoin price to recover to that psychological support area in the short term.

Elon showing an interest in Bitcoin at its current level – more frequently tweeting about Dogecoin – may have helped BTC recover faster on CPI day.

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Will Bitcoin Recover

If Bitcoin can reclaim the trendline on the Bitcoin price chart above, price targets such as $21,500 posted last week by TraderSZ could come into play.

Beyond that, the current range high is around $24,300 based on the weekly candle close or $25,200 based on the wicks.

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Bitcoin bull and former Bitmex leaderboard leader Chimpzoo is expecting Bitcoin to hold over $19k. Update – Bitcoin has now closed an hourly candle above $19k.

Many other market commentators are expecting a strong move to the upside, even if as a bear market rally – we recently reported on DonAlt’s $29,000 Bitcoin price target.

Another popular crypto trader Bluntz is expecting more range bound action for the remainder of the year and potentially well into 2023.