Bitcoin price has experienced a significant increase of nearly 5%, reaching $65,000, a level not seen since May 6. This surge can be attributed to the recent release of the April inflation report, which showed a slight decline in inflation rates. The Consumer Price Index (CPI) fell to 3.4% in April from 3.5% in March, aligning with market expectations. Additionally, the core CPI dropped from 3.8% to 3.6% during the same period, further boosting market confidence in Bitcoin.
Economist Peter Schiff believes that despite the current data, larger CPI increases are inevitable in the future, potentially prompting the Federal Reserve to cut interest rates. While the surge in Bitcoin’s price is seen as a positive sign for investors, with the hope of continued loose monetary policy by central banks, it has also resulted in the liquidation of 53,079 traders, amounting to $120.55 million in total.
From a technical analysis standpoint, Bitcoin’s price must surpass and maintain a stable close above $65,500 to witness a change in market structure. The presence of a substantial green candle in the one-day timeframe indicates a bullish trend and suggests robust buying pressure. Moreover, indicators such as the Relative Strength Index (RSI) and the Awesome Oscillator (AO) displaying higher lows and positive territory respectively indicate growing bullish sentiment.
On the other hand, a rejection from the $65,500 level could lead to a price retraction. If Bitcoin falls below $60,630, panic selling might occur, potentially pushing the price down to $58,000 or even the May 1 lows of $56,552, representing a decline of nearly 13% from its current levels.
Overall, while the CPI report showing easing inflation in April has provided a temporary boost to Bitcoin, it remains to be seen whether the cryptocurrency will reach the $70,000 mark. Market sentiment and ongoing economic factors will continue to influence Bitcoin’s trajectory in the coming days.