Bitcoin Whale Accumulation Rises Ahead Of US CPI Data

As BTC faces a recent price dip, the crypto market is witnessing a strategic move by prominent Bitcoin whales amid anticipation of key inflation data releases. However, despite the price dip, market watchers suggest that the increase in entities holding substantial amounts of Bitcoin indicates a bullish sentiment.

Notably, this surge in accumulation aligns with potential market corrections and is complemented by crucial support and resistance levels. Additionally, these market dynamics intertwine with the imminent U.S. Consumer Price Index (CPI) release, adding a layer of anticipation and strategic consideration.

Bitcoin Whales Accumulate as Market Faces Volatility

Amid the recent turbulence in the cryptocurrency market, prominent analyst Ali Martinez sheds light on a noteworthy development. A recent X post of the crypto expert showed that the aftermath of the Bitcoin price dip reveals a discernible surge in entities holding 1,000 BTC or more. Notably, Martinez indicates that this uptick in accumulation implies that Bitcoin whales are leveraging the market dip to increase their holdings.

Martinez, in his other update, suggests that the crypto market is not without its stabilizing factors. In the event of a deeper correction, Bitcoin has a solid support zone ranging between $37,150 and $38,360. This support is backed by a substantial 1.52 million addresses holding a collective 534,000 BTC.

However, it is worth noting that two significant resistance walls loom at $43,850 and $46,400, potentially acting as barriers to the Bitcoin uptrend.

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Price Movements Amid CPI Anticipation

As Bitcoin experiences fluctuations, market players are keeping a close eye on the upcoming U.S. Consumer Price Index (CPI) release. Scheduled for later today, the Bureau of Labor Statistics report is anticipated to reveal a decline in Consumer Price Index (CPI) inflation to 3.1%, marking the lowest point in the past five months.

According to financial experts, the cryptocurrency market is poised for a rebound following the recent selloff, contingent on the inflation data being lower than the projected figures.

Meanwhile, Bloomberg economists Anna Wong and Stuart Paul suggest that a decline in energy prices might offer the Federal Reserve room to consider lower interest rates. In addition, the economists predict that short-term inflation expectations have diminished due to lower energy prices, potentially allowing the Fed to contemplate rate cuts.

Inflation has moderated more rapidly than expected, raising speculation about rate cuts in the coming months. However, Fed officials caution about potential challenges on the path to the 2% inflation target, emphasizing the importance of monitoring the labor market and inflation risks.

Meanwhile, as of writing, the Bitcoin price slumped 1.6% to $41,764.92, and its trading volume soared 17.2% to $31.63 billion. Notably, the crypto has touched a low of $40,234.58 and a high of $42,470.31 in the last 24 hours, suggesting increased volatility in the digital asset space.

Also Read: XRP Lawyer John Deaton Lashes Out At Sen Elizabeth Warren & SEC Chair Gary Gensler

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Rupam, a seasoned professional with 3 years in the financial market, has honed his skills as a meticulous research analyst and insightful journalist. He finds joy in exploring the dynamic nuances of the financial landscape. Currently working as a sub-editor and crypto journalist at Coingape, Rupam’s expertise goes beyond conventional boundaries. His contributions encompass breaking stories, delving into AI-related developments, providing real-time crypto market updates, and presenting insightful economic news. Rupam’s journey is marked by a passion for unraveling the intricacies of finance and delivering impactful stories that resonate with a diverse audience.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.