Bitcoin (BTC) Pumps on FED News and CPI Data

BTC price pump due to FED news and upcoming CPI data.
Bulls in BTC push price to $17,912.52 in the last 24-hours.
BTC meets resistance at $17,916.59 and support at $16,966.59.

Bitcoin prices are holding steady above $17,000 ahead of the release of the latest report on the Consumer Price Index (CPI) in the United States on Tuesday and the interest rate decision by the Federal Reserve in the United States on Wednesday. A decrease in implied volatility for bitcoin has also been observed in recent weeks.

The Consumer Price Index for October came in at 7.7%, which was lower than the 8% that was expected on November 10. This was unable to influence crypto prices due to the FTX liquidity issues. On November 11, FTX and more than 130 related companies, including Alameda Research, submitted their Chapter 11 bankruptcy petitions.

The data for the US Consumer Price Index for the month of November will be released by the Bureau of Labor Statistics of the United States. It is anticipated that the rate of inflation will decrease for the fifth consecutive month to 7.3% in November, which is a decrease from the rate of 7.7% seen in October. It will be the lowest level since the month of December 2021. It is anticipated that the Core CPI will fall slightly to 6.1% in November, down from 6.3% in October.

The Federal Open Market Committee (FOMC) will hold a meeting on December 13–14, following which, on December 14, the Fed will announce its decision regarding whether or not to raise interest rates. In addition, FOMC is going to publish its economic forecasts for the following months. The Chair of the Federal Reserve, Jerome Powell, has previously alluded to the possibility of a reduction in the pace of rate hikes in December and the months that will follow.

It has been determined by the CME FedWatch Tool that there is a 72.3% chance of a rate increase of 50 basis points. Wall Street is also anticipating that the Federal Reserve will raise interest rates in November by a total of fifty basis points (bps).

In the meantime, the Consumer Price Index will have an effect on the decision of the Federal Reserve to raise interest rates, and an increase of 75 basis points (bps) could also be on the table. JPMorgan anticipates that the CPI will read between 7.2 and 7.4%, but a CPI reading that is lower than 6.9% YoY could signal the bottom of the bear market.

BTC Technical Analysis

According to the 24-hour price chart, bulls in Bitcoin market appear to have dominated the market. This is shown by the parabolic SAR indicator, which shows that the dots have aligned above the candlestick pattern, indicating that this bullish trend may be experienced in the future. The readings of the parabolic SAR indicator are currently 15,766.75 as of right now.

The RSI indicator has moved into the “overbought” area and is above the “signal” line. This suggests that the current bullish run may continue in the hours ahead.

BTC/USD 1-day price chart (source: TradingView)

Bollinger Bands (BB) are currently pointing in the direction of the upper territory, which offers additional support for the idea that the bullish trend may continue in the hours to come. This also demonstrates that there is more buying pressure to buy than sell pressure, which means that investors and traders can keep their positive outlook on the price of BTC for the time being because the market is under the control of bulls. At this time, the upper band is located at 17897.56 and the lower band is located at 16768.99; these levels represent the resistance and support for the BTC price in the short term.

The Williams Percent Range (William %R) indicator currently has readings of -8.72, which demonstrates that bulls are driving the price of BTC higher. Additionally, the fact that the Williams %R is moving closer to “0” indicates that bulls have assumed control of the market. As a direct consequence of this, investors and traders might anticipate that the bullish trend will continue for the foreseeable future.

BTC/USD 4-hour price chart (source: TradingView)

In conclusion, the Bitcoin price is in a bullish grassland right now, and the trend could continue in the long run if the bulls keep up the pressure.

Read Also:

Munene Kelvin

Kelvin enjoys writing about cryptocurrency and blockchain. He started blogging in 2019 and switched to cryptocurrency in 2020. Kelvin is interested in technology, football, chess, and Defi. He wants decentralization to benefit everyone on the planet.