April 17, 2024

Bitcoin (BTC) Soars from $17K Following Core CPI Report; Time to Go Long?

  • BTC lower timeframe structure exhibited bearishness.
  • Bitcoin bulls can wait for a potential pullback before placing their bid.

The United States CPI release ensured a respite to crypto bulls as it suggested that inflation could be slowing. The core consumer price index (excluding energy and food) surged 0.1% that last month and beneath the 0.3% forecast.

That showed the worst of global inflation might be over. Meantime, the data release triggered rallies in the stock market and Bitcoin.

Crypto remains risky for market players, and reduced spending power over the previous year witnessed widespread selling activities in the marketplace. Though inflation stayed elevated, slowdowns might see Bitcoin printing a higher chart bottom.

Likely Breakout for BTC

The 1hr chart shows Bitcoin recorded impressive surges within the last 48 hours. The crypto has climbed from a $16.8K Monday low to $18K early Tuesday. The bellwether crypto surged approximately 6.35%. While publishing this post, $BTC traded close to the $17.8K hurdle.

Meantime, $17.8K represented the peak of the range that BTC explored since 10th November. The value area at $17.3K acted as a massive resistance within the last seven days. However, recent upsides saw it breaking this range. Moreover, the uptrend left inefficiencies on the price charts.

BTC might revisit the 1hr chart FVG (fair value gap) in the upcoming trading hours. A southward swing failure setup accompanied by an uptick beyond $17.6K might catalyzes buyers ready to execute. They can place stop-losses below the SFP lows if it emerges.

The Awesome Oscillator (AO) displayed bullish strength. Meanwhile, the A/D (Accumulation/Distribution) indicator soared steadily within the previous week. That indicated buying momentum in the place.

Open Interest Increases Alongside Price, Signaling Impressive Demand

The OI dropped beneath $7.226 billion since 6th December, and only the past two days’ surge conquered this zone. Previous attempts over the last week had Bitcoin encountering rejection at $17.3K. The surging OI (Open Interest) suggested that futures players were willing to join the market.

Also, the finding rate remained positive, showing that bulls regained some power. Northward actions will meet a challenging obstacle at $18.6K. Bitcoin plunged to $15.6K following FTX fall news.

Meanwhile, the updates of slowing inflation can mean a turning corner for crypto. The higher chart downside trend can change into an accumulation period, and market players can start to evaluate longer-term opportunities.

The 24hr chart shows Bitcoin adheres to a parallel channel, within which prices indicate stable growth inside two climbing trendlines. Thus, Bitcoin price could extend its recovery until the setup support trendline becomes intact. The crypto retested the setup’s resistance trendline during this writing.

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