Following the US announcement about the Consumer Price Index (CPI), Bitcoin (BTC), saw its support reversed against dollars (USD) and bounced back. This metric measures inflation in the U.S. dollar. It hints at possible slowdown.
The Bitcoin price fell from $24,200 – $22,800, despite signs of relief rally. However, it was met with resistance before CPI news sentiments. Data feeds via Bitstamp
BTC Prices on The Weekly Chart
The chart shows that the BTC price saw a weekly lowest of $19,100. It bounced back from there and rose to $24,300.
It faces resistance at $24,300 and has gained more momentum.
If the price of BTC on the weekly chart continues with this bullish structure, it could quickly revisit $28,000.
Weekly resistance for the price of BTC – $28,000.
Weekly support for the price of BTC – $19,100.
BTC Price Analysis On A Daily (1D), Chart
BTC’s price found support around $20,600 with what appears to be an area for interest on the daily charts.
BTC bounced off its support and formed a rising wedge, as it faces resistance from breaking above $24,200.
The price of Bitcoin is currently at $23,980. This resistance corresponds with the 50 exponential moving averages.
If the price of BTC fails to break above the 50 EMA region, and at the same time breaks below the ascending wedge, $20,600 would be a good support to hold sell-offs and a possible price bounce.
BTC could rise if there are more buy offers and a positive CPI announcement.
On the daily chart, the RSI of BTC’s price is over 50. This indicates that there are healthy bids to buy BTC.
BTC volumes indicate low buy orders, which indicates bulls would like to know what the CPI meeting’s outcome is.
Daily (1D) resistance for BTC price – $24,300.
Daily (1D) support for BTC price – $22,800, $20,600.
BTC Price Analysis on the Four-Hourly Chart (4H)
BTC prices have shown an increasing wedge in the 4H charts, with rejections at $24,000.
BTC’s price is $23,990, trading above the 50 but above the 200 EMA with prices of $23,200 and $22,700 on the 4H chart. These are support areas for BTC in the 4H chart.
Four-Hourly (4H) resistance for BTC price – $24,300.
Four-Hourly (4H) support for BTC price – $23,200, $22,700.
BTC’s price would rise if the CPI was positive.
Featured Image from NewsBTC and Charts at TradingView.com