Bitcoin (BTC) price is facing an increased selling pressure as the most valuable cryptocurrency failed to break above the 200 moving average. After sideways price action since the start of the week, the price has finally broken below the $27,000 support level.
On Thursday, BTC price extended its weekly loss by another 0.24% in the 5th consecutive red day for the digital asset. There is a strong chance of the price dropping to $26,000 if the bulls fail to push it above the Monday lows. The bearish price action of Bitcoin has sent most altcoins to their fresh monthly lows.
Jim Cramer Expects BTC Price To Go Down
Renowned American Television personality and the former head fund manager, Jim Cramer, has issued another warning for Bitcoin holders. According to the Mad Money TV show host, “Mr. Bitcoin is about to go down”.
However, crypto enthusiasts rarely care about what Jim Cramer says as the markets usually react opposite to what he expects. Many crypto traders consider his bearish views as a signal of a local bottom or an end of a downtrend.
Bitcoin Price Shrugs Off CPI Data
Since the US Federal Reserve has started to hike the interest rate, the CPI data has gained a lot of significance in the financial markets. Due to this reason, Bitcoin price shows increased volatility on the day of the CPI report’s release.
However, the price action of the biggest digital asset on the planet remained unfazed by the release of September inflation data. The data showed that the YoY inflation increased 3.7% last month compared to the forecast of 3.6%. This suggests that the investors are not surprised by a slight uptick in inflation as the overall trend remains steady.
Bitcoin Dominance Rebounds
Bitcoin dominance (BTC.D) gives critical insight into the direction of the flow of capital in the crypto markets. Since the August crash, BTC.D has been on an uptrend, which shows that the traders are pouring money into Bitcoin. However, that may not necessarily mean the injection of fresh capital.
The drop in the altcoin market cap (Total 3) during this time reveals that the money has moved from the altcoins toward BTC as investors de-risked their portfolios. After a brief correction, Bitcoin dominance is rising once again.
Bitcoin Price Prediction
Any Bitcoin price prediction is pointless without incorporating advanced technical analysis. On a daily timeframe, the BTC price has broken below the falling wedge pattern. This breakdown may turn into an intense downtrend if the price loses its $25,000 support.
It is also visible that the price is struggling to break above the 200-day moving average, currently at around $28,000. This key moving average often acts as a benchmark for the bullish or bearish trend for many traders.
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Source: https://www.analyticsinsight.net/btc-outlook-bitcoin-price-remains-unfazed-by-cpi-report/