Bitcoin October 13, 2022: The Counterattack
Green victorious? The price of Bitcoin (BTC) temporarily retreats below $19,000 on a dreaded day since the start of this week. The bulls still managed to quickly turn things around.
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Bitcoin Price Above $19,000 Despite Inflation Pressure
The price of bitcoin drops to $18,200 – its lowest since July – today, October 13, 2022. The cryptocurrency still manages to rally back to $19,000. It even trades at $19,446 at the time of writing this article. Its price is currently registering a daily gain of 1.59%.
Markets are finally on track to end the day in the green, after the release of Consumer Price Index (CPI) data in the United States brought the price of Bitcoin back to around $18,000.
According to the Bureau of Labor Statistics, the CPI registered a monthly increase of 0.4% in September 2022, against the Dow Jones forecast of 0.3%. Over 12 months, the consumer price index jumped 8.2%.
Risky assets were kept in the red for a while by the FED
Given these figures, which show that inflation is still not under control, the chances that the FED will take a decision favorable to risky assets are slim.
Founder of trading firm Eight, Michaël van de Poppe, shared a chart that shows markets are currently expecting, with near 100% probability, up 75 basis points rates in November.
An increase of 100 basis points, “with a 2 to 15% chance”, is even expected, “after the CPI is higher than expected”.
Bulls face the same resistance over and over again
Bitcoin ultimately held up pretty well against this CPI data release, avoiding a drop below the June lows for now, which would bring it closer to the $16,000 and then the $14,000 that some traders and investors expect.
Michaël van de Poppe even believes that the price of Bitcoin “seems ready for the bullish continuation”, but a zone of “crucial resistance”, at $19,300 – $19,500, currently complicates the continuation of this ascent. Bitcoin rose as high as $19,503 on Bitfinex today.
Until central banks get back to printing money, Bitcoin appears to lack the strength to initiate a bullish rebound that at least allows it to return to levels above and far enough away from $20,000.
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