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Bitcoin (BTC) reached a new high when trading at US$66,400 this Wednesday. This appreciation occurred shortly after the release of the Consumer Price Index (CPI) data for April, which indicated a relief in inflationary pressures.
According to the US Bureau of Labor Statistics, April’s CPI registered a 3.4% increase compared to the previous year, a drop from the 3.5% seen in March. More significantly, the core CPI, which excludes volatile food and energy prices, also showed a reduction, falling from 3.8% to 3.6%. These data were in line with market expectations and reinforce the perception of more effective inflation control.
This milder inflationary scenario reduced expectations that the Federal Reserve would maintain a more aggressive stance for longer. “The reading provided some relief after previous CPI reports suggested more persistent inflation, which dampened expectations of an early interest rate cut from the Federal Reserve,” as previously cited.
With inflation appearing to retreat, optimism is reflected in market bets, where there is now a 75% probability of a cut in interest rates as early as September, as indicated by the CME FedWatch tool.
The effect of this favorable outlook was not limited to Bitcoin. The flagship cryptocurrency has seen a nearly 7% increase in value over the past 24 hours, briefly surpassing the $63,000 mark immediately after the release of inflation data.
The cryptocurrency market as a whole also reflected this enthusiasm, with an increase of almost 6% in its capitalization, reaching around US$2.5 trillion. Prominent altcoins like Ethereum (ETH) and Solana (SOL) followed this upward trend, with ETH surpassing $3,000, up 4%, and SOL advancing 8% and breaking the $150 barrier. Other FTM altcoins, SEI, IMX, TAO, BEAM had more than 15% gains on the day.
Bitcoin Could Rise to $68,000 Resistance
According to a trader's analysis, the Bitcoin price demonstrated promising behavior after deviating below the minimum range. “After deviating below the range low, the price bounced, touched resistance and is now returning to an interesting support zone. This could be forming the first higher low,” said the expert.
The trader highlighted that there is strong demand between US$59,000 and US$61,000, with indicators mostly optimistic, which suggests a likely recovery. He mentioned that “if BTC breaks the $65K resistance, I would be looking for between $68K and $69K as a first target and $74K – $75K as a second target.”
However, the analyst warned of the possibility of an invalidation of the bullish scenario: “The bullish invalidation would be a bearish PA in the previous liquidity zone.” Therefore, it is essential to closely monitor market behavior, especially in the identified resistance and support zones.
$BTC https://t.co/dWOeIXLTZ7 pic.twitter.com/mVXVX388DT
— il Capo Of Crypto (@CryptoCapo_) May 15, 2024
Disclaimer:
The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing or trading cryptocurrencies carries a risk of financial loss.
Source: https://portalcripto.com.br/bitcoin-ultrapassa-us-66-000-e-pode-subir-para-resistencia-de-us-68-000-segundo-analise/