Image by: Brad – Unsplash
After a week of sideways movement, bitcoin price is finally seeing some movement; Bulls are pushing for the most immediate critical resistance. Increasing uncertainty in the macroeconomic landscape is supporting the rise in price action, but optimistic operators may have been too quick to take their positions.
As of this writing, Bitcoin is trading at $29,700 with sideways movement over the past 24 hours and a 2% gain over the past week. Other cryptocurrencies in the top 10 experience similar price moves, but Solana stands out with a 6% gain over similar timeframes.
BTC price is moving sideways on the daily chart. Source: BTCUSDT trade view
BTC price is moving sideways on the daily chart. Source: BTCUSDT trade viewWhy is bitcoin price up today but could go down tomorrow?
All eyes are on tomorrow’s data for the US Consumer Price Index (CPI), the indicator used to measure inflation in this country’s fiat currency. A recent report underscores the positive expectations for the event as most investors expect inflation to ease further.
This could allow the Federal Reserve (Fed) to slow down its rate hike program and finally give Bitcoin room to break through and convert $30,000 into a support zone. However, the report notes that any surprises could have the opposite effect.
In this scenario, data from crypto analyst firm The King Fisher shows long liquidity concentration between $27,000 and $29,000. As seen in the chart below, this liquidity could act like a magnet, wiping out BTC’s gain and pushing it towards support.
BTC is hoping for around $27,500 and $28,500 could pose a threat to a rally. Source: TheKingFisher on X
BTC is hoping for around $27,500 and $28,500 could pose a threat to a rally. Source: TheKingFisher on XConversely, positive CPI data could have little or no impact on BTC, allowing it to remain in its current range. As NewsBTC
Material Indicators analyst Keith Alan believes the Bitcoin bulls are struggling to regain control of the 50-day moving average (MA). While the analyst thinks the upside momentum could weaken, a push into the $30,200-$30,000 region is likely. Alan explained:
That doesn’t mean we can’t see a move into the $30.2k to $30.5k range today. In fact, I think there’s a good chance we’ll see that, and if we do, I’ll take even more profit. What I’m looking for is where we close today and where the liquidity on offer is arriving as local support.
Cover image from Unsplash, chart from Tradingview
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