Bitcoin’s market behavior may experience a significant alteration after the publication of the United States Consumer Price Index (CPI) data. While the release of US CPI data is expected to instigate volatility across the broader crypto market, Bitcoin could potentially see its value rise once again.
Is A Shift Towards An Uptrend For Bitcoin Imminent?
Negentropic, a market analyst and co-founder of the on-chain data platform Glassnode, discussed in a post on X the consequences of Bitcoin’s price movements following the US CPI data release.
The analyst emphasized the possibility of Bitcoin undergoing a price rebound amid the heightened volatility anticipated from the event. “The release of today’s US CPI will introduce market volatility. A higher figure is projected, but any unexpected outcome could disrupt the landscape,” he commented.
Historically, US CPI data announcements have prompted sharp market reactions as investors assess inflation trends and their implications for Federal Reserve policies. Although there might be short-term ambiguity, BTC’s overall market framework appears to be stable, with the specialist noting critical support zones that could facilitate a recovery.
At present, Bitcoin’s price is firmly positioned at the $95,000 mark. However, Negentropic pointed out that a further drop to between $94,000 and $92,000 could help the asset secure liquidity.
If this scenario unfolds as anticipated, Bitcoin may undergo a bullish trend reversal toward the $97,000 and $98,500 levels. According to the analyst, BTC needs to regain this price zone before it can surge towards the $100,000 target.
The experienced analyst appears optimistic regarding BTC’s potential to reach $100,000 in the near term. A significant factor supporting his viewpoint is the Regime Shift. This metric indicates that the asset may have located a bottom before its ascent to $100,000.
Moreover, Negentropic observed that even with a reexamination of the $95,000 level, erratic price movements are likely to continue in the following days. Nevertheless, he suggests that BTC will likely stabilize its transition into a bullish zone, provided this area remains a robust support.
Selling Pressure May Obstruct BTC’s Ascension
While BTC prepares for a movement towards the $100,000 mark, the asset could encounter hurdles like significant selling pressure. Market analysis platform IntoTheBlock reported that 1.6 million addresses that previously purchased 1.57 million BTC at an average price of $97,200 are creating a resistance level.
As Bitcoin’s price hovers below this level, these holders are currently facing losses, which may lead them to sell their holdings near the breakeven point. With rising market uncertainty, this situation could result in intensified selling pressure, complicating any potential upward breakout for BTC.
Featured image from Unsplash, chart from Tradingview.com
