Bullish Or Bearish For Bitcoin? CPI Comes In At 6.5%

For the Bitcoin price, the course for the remaining of January can have been set today. The query was: Will Bitcoin proceed its mini-bull run or will there be a correction? This was decided by today’s Consumer Price Index (CPI) release within the US at 8:30 am EST.

The baseline was relatively clear. Most estimates agreed that 6.5% is the magic line that may determine whether it’s a bull or bear market within the short term. If the figure is 6.3% or lower, there shall be a bull run because the US central bank projections from the last FOMC aren’t any longer credible and shall be thrown overboard.

At 6.3% to six.5%, the market is more likely to rejoice with restraint, although this may increasingly already be priced in. At 6.5% to 7.1%, there shall be a sell-off.

And the estimates were spot on. The CPI got here in at 6.5%

JP Morgan had released its own game plan and called for a 65% likelihood that CPI shall be between 6.4% and 6.6%, which could trigger a 1.5% to 2% upside move within the S&P 500, based on the banking giant.

The 2 less likely scenarios, based on JP Morgan, are that CPI falls below 6.4% (20% likelihood), which could mean a 3% to three.5% pump for the S&P 500. Within the worst-case scenario, CPI is above 6.6% (1,5%), which could mean a 2.5% to three.5% downside for the S&P 500, based on JP Morgan.

As Bitcoin trades with the next beta, the CPI print today should lead to an excellent more volatile crypto market. It also needs to be taken into consideration that the BTC price has already experienced a robust run within the run-up to the discharge; this makes the market all of the more sensitive to the CPI figure.

Even when the worth is below the previous month at 7.1%, a major decline shall be crucial to please the high expectations of the market.

Bitcoin Price – Levels To Watch Today

A take a look at the 1-hour chart reveals that Bitcoin investors have front-ran the discharge of the supposedly positive CPI data. Throughout the last 24 hours, the BTC price has risen by 4.2% and was at $18,196 at press time.

With that, the Bitcoin price is facing upside resistance at $18,238. If the info is favorable, it needs to be a simple task for Bitcoin to interrupt through this resistance.  If the CPI is above 6.5%, the bulls can have to defend the support at $17,609 first. Nonetheless, the much more necessary level of support for Bitcoin is at $17,322.

A take a look at the 1-day chart reveals the same picture. On the upside, the range between $18.238 and $18.382 is more likely to be crucial in determining whether the Bitcoin price will soon trade back above $19,000, which is roughly where the following key resistance zone awaits.

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