Bitcoin’s market dynamics may witness a notable shift following the release of the United States Consumer Price Index (CPI) data. While the US CPI data release is likely to trigger volatility in the general crypto market, Bitcoin could still see its price move upward once again.
A Transition For Bitcoin To An Uptrend Coming Soon?
Negentropic, a market expert and the co-founder of on-chain data platform Glassnode in an X post has delved into the aftermath of Bitcoin’s price action following the US CPI data release.
The expert pointed out the potential for Bitcoin to experience a price recovery amid the increased volatility expected to be triggered by the event. “Today’s US CPI release will bring volatility to the markets. A higher number is expected, but any surprise could shake things up,” the expert stated.
US CPI data reports have historically caused the market to react sharply as investors evaluate inflation patterns and how they affect Fed policy. Even though there may be uncertainty in the short term, BTC’s overall market structure seems to be intact, with the expert identifying crucial support levels that might aid in a rebound.
Presently, Bitcoin’s price is holding strong at the $95,000 level. However, Negentropic highlighted that a further decline to the $94,000 and $92,000 price range would allow the asset to capture liquidity.
In the event that this move plays out as expected, Bitcoin could witness a bullish trend reversal to the $97,000 and $98,500 thresholds. According to the analyst, BTC must reclaim this price range before it can rally toward the $100,000 milestone.
The seasoned expert appears to be confident about a move for BTC to $100,000 in the short term. One key factor backing up his belief is the Regime Shift. This metric shows that the asset may have found a bottom prior to its rally to $100,000.
Furthermore, Negentropic noted that even with a retest of the $95,000 level, choppy price action would persist in the upcoming days. However, he claims that BTC will probably solidify its move into a bullish quadrant as long as this zone remains a strong support.
Selling Pressure To Hinder BTC’s Upward Move
While BTC gears up for a move to the $100,000 level, the asset might be faced with challenges such as robust selling pressure. Market intelligence platform IntoTheBlock reported that 1.6 million addresses that previously bought 1.57 million BTC at a mean price of $97,200 are establishing a level of resistance.
With Bitcoin’s price trading below the level, these holders are currently at a loss, which may cause them to sell their coins close to the breakeven point. Since market uncertainty is rising, the development could lead to heightened selling pressure, thereby complicating any clear upward breakout for BTC.
Featured image from Unsplash, chart from Tradingview.com
