- Bitcoin price temporarily dropped below $49k on Tuesday as US CPI data came in higher than expected thus triggering significant liquidations of short traders.
- The recent Bitcoin drop coincided with a notable spike in greed as crowd discussion on possible price uproar to $55k spiked.
Bitcoin (BTC) has registered heightened volatility in the recent past amid the increased demand from whale traders and the macroeconomic outlook. The flagship coin has, nonetheless, maintained a bullish outlook, whereby the instrument reached a fresh 24-month high on Wednesday against all odds.
Consequently, more than $200 million has been liquidated from the crypto derivatives market in the past 24 hours as traders attempt to decipher the next course of action. The bigger picture on the upcoming halving and the continued cash inflows to crypto investment products has helped maintain a general bullish outlook.
Hotter than Anticipated US CPI Data Triggers Short-Term Weaknesses
On Tuesday, the United States Bureau of Labor Statistics released the second Consumer Price Index (CPI) data of 2024, which ostensibly came in higher than economists had projected. The US CPI data was reported to experience a spike of 0.3 percent monthly and climbed 3.1 percent on an annual basis, whereas Wall Street expected 2.9 percent.
The market derived that the US Federal Reserve has not succeeded in taming the high inflation, whereby the housing sector was the most hit.
Despite the reassurances from the Secretary of the Treasury Janet Yellen on Tuesday, the stock market indexes, gold, and the crypto market experienced mild selling pressure. According to a popular veteran trader, investors should embrace higher inflation is here to stay, which is bullish for Bitcoin and the crypto market.
Investors still don’t get it. Today’s hotter than expected #CPI doesn’t mean the #Fed just needs to fight a bit harder to win the #inflation fight, but that its already lost. It’s not just a matter of delayed rate cuts, but the horrific truth that high inflation is here to stay.
— Peter Schiff (@PeterSchiff) February 13, 2024
Bitcoin Price Action and Possible Targets
As of this report, Bitcoin price had since rebounded from the US CPI-induced correction to reach a fresh yearly high on Wednesday. According to a popular crypto analyst Michael van de Poppe, Bitcoin price is well poised to continue in a bullish outlook for as long as the support level around $46k holds in the coming weeks.
Crypto analyst has cautioned traders to keep track of the ETH/BTC pair that has shown all signs of an inevitable rebound, as it could trigger heightened crypto cash rotation to the altcoin market.
#Bitcoin correcting slightly after CPI came out (higher than projected).
Inflow is great, but it’s not a guarantee that it will go up endlessly.
As long as #Bitcoin stays above $46K, trend remains up.
Good sidenote: ETH/BTC bouncing upwards. pic.twitter.com/gK3j54iGPi
— Michaël van de Poppe (@CryptoMichNL) February 13, 2024
According to market intelligence platform Santiment, more crypto investors have been anticipating Bitcoin price to continue on a bullish outlook in the coming weeks. Santiment highlighted that the crowd has been showing heightened greed amid increased volatility, which is an early warning sign of market tops. As a result, Bitcoin price is likely to first hit the psychological ceiling between $55k and $57k before retracing to the support between $38k and $40k according to the weekly Auto Fibonacci Retracement.
Traders appear to be in quite a battle around #Bitcoin‘s $50K market value. When it comes to these psychological support levels, the level of crowd #FOMO or #FUD plays a major role in whether that value ultimately is exceeded for the long term. We see that $55K
(Cont)
pic.twitter.com/f0eRdIw5zm
— Santiment (@santimentfeed) February 14, 2024
Worth noting that Bitcoin price has led the altcoin market in a notable rebound on Wednesday to reclaim the $2 trillion valuation. According to the latest data, Bitcoin price has gained about 2.4 percent in the past 24 hours to trade at
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