The high Consumer Price Index report caused a plunge in Bitcoin’s price of 8% within the past 24 hours.
After the CPI reported a 0.1% rise in August, the prices of many altcoins dropped on their charts. This has brought the unadjusted price to 8.3%.
Annual growth was forecast to reach 8.1%. Bitcoin lost 4% in the past 24 hours.
Given that the market is undergoing an extended sell-off, a further fall in BTC’s value could be expected. Technically, BTC’s outlook is bearish. At the time of writing, buyers had left the market.
Bitcoin prices have struggled to $18,900 in the last month. But, they managed to overcome this price level over the course of the last week.
Bitcoin has exceeded the $22,000 mark. Recent CPI data has caused Bitcoin to fall.
Given the dominance of sellers in the market, the indicators have sided with the bears. Today’s global cryptocurrency market cap is $1.04 trillion. There has been a 2.5% decrease in price over the past 24 hours.
The One-Day Chart: Bitcoin Price Analysis
BTC trades at $20,000.200 at the time this article was written. Due to an unanticipated CPI number, the plunge below $22,000 was abrupt.
Bitcoin prices were at their lowest point of resistance, around $21,000 BTC could trade again above the $22,000 mark if it manages to overcome this level.
BTC received $19,200 local support The intense sell-off could cause the coin to fall below the $18,900 support level.
There was a slight increase in Bitcoin trade volume during the previous session.
Technical Analysis
Over the past 24 hours, BTC saw a dramatic drop in buyers. The price is now near its nearest support level due to this drop in buyers.
Relative Strength Index fell below half-line. This indicates bearishness and strong selling.
The RSI showed a modest uptick over the previous trading sessions. It indicates that there was an increase in buying strength.
The Bitcoin price fell below the 20-SMA, which is also an indication that the sellers are driving price momentum.
BTC showed a buy signal, despite it only showing a small buy signal following an appreciation in buying strength.
The Awesome oscillator displays the strength of the market and the direction that the price is heading. AO increased above the halfway mark, indicating that buyers may take action on this price action.
Even if sellers act upon the buy signal the asset price will not notice any upward movement. The Directional Movement Index indicates price direction and momentum.
The DMI (Decreased Mean Interest) was lower than the -DI(orange) line. Average Directional Index (red), which was higher than the 20 mark indicated that current price direction had gained strength.