Turbulence loading? The storm is long overdue, calm continues to reign over the markets. For now, the Bitcoin (BTC) price remains indifferent to the publication of the first macroeconomic statistics.
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Bitcoin Price at $19,000: A Taste of Inflation
Bitcoin price holds above $19,000 today, October 12, 2022. Cryptocurrency is trading at $19,140 at the time of writing this article. Its price is currently registering a daily mini-gain of 0.66%.
Volatility is still not there, on the eve of the publication of the Consumer Price Index (CPI) in the United States.
Pending these data, the Bureau of Labor Statistics released today the figures on the Producer Price Index (PPI). It corresponds to the price paid by wholesalers – and not by consumers, as for the CPI.
The PPI has increased by 0.4% month-over-month in September, versus a Dow Jones forecast of 0.2%. The efforts of the US Federal Reserve (FED) to stem inflation are therefore not yet reflected in the figures.
Will the FED then be even more aggressive? The founder of the trading company Eight Global, Michael van de Poppe, evoked an increase in “projections for November rate hike”. It indicates that 96% of respondents currently expect an increase of 75 basis points.
Bear markets only halfway?
The FOMC announcement on interest rates and the publication of data on the Consumer Price Index could therefore signal the return of volatility to the markets. The current flat calm reflects this uncertainty, this waiting posture of traders and investors.
While waiting for this volatility, some traders and analysts try to make projections based on historical data over several years. the trader he Capo Of Crypto shared a graph that shows an analogy between the price of Bitcoin in 2018 and its current course. If the bearish scenario of about four years ago repeats itself, then Bitcoin would fall up to $14,000.
Regarding this potential floor price, analysts at whalemap shared a graph that puts the duration of the current bearish phase into perspective. This bear market has lasted “for 167 days already”, but the last low at $3,000 in 2019 was only reached after 305 days of decline, or “ almost twice as many days of losses only during this crypto winter.
The markets are therefore expecting turbulence tomorrow, October 13, 2022, with in particular the publication of the CPI and the intervention of the FOMC which has been delayed. Is the $19,000 going to give way permanently or is a strong bullish bounce, no matter how surprising, possible?
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