Despite a recent period of volatility in the crypto market, the release of the latest CPI news has sparked renewed optimism among investors in major cryptocurrencies. The announcement from the US Bureau of Labor Statistics revealing a decrease in CPI to 4.9% has resulted in a significant increase in buying activity within the crypto market.
Crypto Market Gives A Clear Direction
The lower-than-expected inflation numbers sent ripples throughout the cryptocurrency ecosystem, as leading digital assets experienced a massive surge in buying pressure. Bitcoin, Ethereum, and other top-performing cryptocurrencies saw their values skyrocket, much to the delight of the crypto community. Market participants who previously refrained from investing, began pouring funds into these assets, reigniting their upward trajectories.
Bitcoin Price Analysis
Bitcoin, the leading digital currency, underwent a substantial surge in value, attaining a daily peak of $28,883 on the Bitstamp platform on May 10. This notable surge in Bitcoin’s value appears to correlate with the most recent U.S. inflation data which increased by 4.9% over the year ending in April, as reported by Coinpedia.
As of writing, Bitcoin price is trading at $28.1K, gaining over 2.2% in the last 24 hours. Bitcoin price has climbed from a low of $27,474 to a high of $28,331, displaying a surge in buying pressure. Currently bulls are trying to push the BTC price above the EMA-20 trend line at $28.5K, but failed in the first attempt due to lack of confidence.
The RSI trend line has surged above its midline and is currently trading at 47, suggesting a bullish volatility in the next few hours. If bulls succeed to push BTC price above the $28.5K, it will aim for a high of $29K. However, a failure to surge above that level will result in a downward correction, slumping the asset to the $27.5K level again.
Ethereum Price Analysis
Following Bitcoin’s bullish comeback, Ethereum price has also witnessed an upward trend, making a high of $1,887. However, similar to Bitcoin, ETH price faced resistance near the EMA-20 trend line at $1,887.68, dropping to the current price level of $1,872.
For the past couple of days, Ether has been trading within a narrow range between its 20-day EMA and the support line at $1,800. However, such limited movement is not anticipated to last much longer. If the price surpasses the moving averages, it will signal robust buying at lower price points.
Consequently, the ETH price may attempt to ascend towards the significant $2,000 resistance level. Although bears are predicted to put up a strong fight at this point, if bulls prevail, the ETH price could potentially skyrocket to $2,150.
On the other hand, if the price struggles to maintain its position above the moving averages, it implies that bears are taking advantage of minor rallies. A breach of the support line could set off a downward trajectory, possibly reaching the 61.8% Fibonacci retracement level at $1,660.
Source: https://coinpedia.org/price-analysis/btc-and-eth-prices-plummet-after-cpi-report-release-heres-what-traders-can-expect-next/