Is a $70K Milestone in the Loop Amid CPI Data?

Yesterday’s inflation report from the U.S. sparked optimism across the market, leading to a significant rally in major cryptocurrencies. Bitcoin, the leading digital currency, experienced a 7.50% increase, reaching $66,350 and breaking through the $65,000 threshold.

Additionally, the release of milder-than-expected U.S. CPI figures prompted widespread short-covering, resulting in a sharp uptick in the cryptocurrency markets. The Consumer Price Index (CPI) data indicated a 3.4% increase, slightly down from the 3.7% figure published in March by the U.S. Bureau of Labor Statistics (BLS).

Now, the question arises: Is it a definitive trend reversal for Bitcoin or merely a temporary surge? Let’s assess all these carefully and consider all the other metrics.

Bitcoin ETFs Inflows Hits Record 2-Week High!

Bitcoin Exchange-Traded Funds (ETFs) have recently seen a substantial influx, with investments nearing $303 million, equivalent to 4600 BTC. 

Following a 7% increase in Bitcoin’s value after the release of U.S. inflation figures, Bitcoin ETF inflows reached a two-week peak. Fidelity’s FBTC led the charge with a $131 million investment, marking its most significant influx since March.

In addition, Bitwise’s BITB experienced an $86 million investment, while BlackRock’s IBIT did not record any new investments for three consecutive days. These developments suggest an emerging demand that could potentially elevate Bitcoin’s price beyond the $70,000 mark.

Moreover, data from Lookonchain indicates that a significant Bitcoin investor, identified by the address bc1qag725vjxxpkkl5gshfkye9xn4p5vklrlhgkw5w, has purchased an additional 102 BTC valued at $6.72 million. Since March 6, this investor has amassed a total of 3,385 BTC, worth approximately $232.15 million, with an average purchase price of $68,579. This activity underscores a robust buying trend among large-scale Bitcoin holders.

Bitcoin Price Outlook: How Hard Is It for Bulls to Conquer $70,000 Mark?

The softened inflation figures have relieved investors, as Bitcoin has shown resilience against further declines. Nonetheless, the upward path appears challenging, with the price persisting within a parallel channel pattern on the daily chart.

The recent price movements indicate that Bitcoin has bounced back from the channel’s lower edge and is now ascending toward the upper edge. Observing Bitcoin’s behavior upon reaching this upper limit will be intriguing.

Should Bitcoin break through the channel’s confines, it could confirm the onset of a bullish trend, potentially propelling the cryptocurrency to unprecedented highs. Conversely, if Bitcoin struggles to breach the upper edge, it could be a precursor to further corrections in the near future.

Conclusion

Yesterday’s U.S. inflation report, showing a CPI increase of 3.4%, sparked market optimism and led to a rally in cryptocurrencies, with Bitcoin rising 7.50% to $66,350. This surge surpassed the psychological level of $65,000 level. 

Moreover, Bitcoin ETFs also saw a major influx of nearly $303 million. Despite this, Bitcoin’s price movement within a parallel channel pattern suggests uncertainty. If Bitcoin breaks above the channel, it could signal a bullish trend towards new highs. However, failure to surpass the upper boundary might indicate impending corrections.

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.

Adarsh Singh is a true connoisseur of Defi and Blockchain technologies, who left his job at a “Big 4” multinational finance firm to pursue crypto and NFT trading full-time. He has a strong background in finance, with MBA from a prestigious B-school. He delves deep into these innovative fields, unraveling their intricacies. Uncovering hidden gems, be it coins, tokens or NFTs, is his expertise. NFTs drive deep interest for him, and his creative analysis of NFTs opens up engaging narratives. He strives to bring decentralized digital assets accessible to the masses.