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Bitcoin Rallies Above $64,000 as US CPI Inflation Data Hits Lowest Rate In 3 Years

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Bitcoin Breaks Above $64.7 as U.S. CPI Data Reveals that Core Inflation is at a Three-Year Low

Bitcoin rallied above $64,000 today, May 15 as the United States inflation data hit significant three-year lows.

The latest CPI data released is a boost for Bitcoin and other high-risk assets since the inflation is lower than expected.

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Notably, the month-on-month CPI is 0.3% for April which is 0.1% below expectations. However, other figures followed the expert projections.

Low Inflation Rates Give Bitcoin Vital Boost

According to analyst, Tedtalksmacro on Twitter, Core inflation is at a historical three-year low today.
bit

Source: X

This is the lowest level the CPI has dropped to since 2021 and is the first decrease in the last three months.

Comparatively, Producer Prices (PPI) inflation data recorded a third straight monthly increase. Meanwhile, the Chairman of the Federal Reserve, Jerome Powell remained dovish about the PPI rates.

According to Powell, the PPI data is not hot but mixed. Also, he stated that time will tell but does not expect that the central bank will push for an increase in interest rates.

Meanwhile, the CME Group’s FedWatch Tool reveals that the market odds for rate cuts remain largely unchanged.

Bitcoin Recovers and Likely to Continue Rally

Also, since the CPI data was released, Bitcoin and other crypto assets have reacted favorably. Notably, BTC has traded below 61,000 this week before rallying above $64,0000 today.

Additionally, CoinGlass data reveals that Bitcoin’s price has an injection of liquidity at higher price levels. So, a new support wall is forming around $65,000.

Furthermore, crypto trader Skew stated that spot buyers must maintain the pressure to reclaim the 200-day EMA as support.

Additionally, in a follow-up post on X Skew noted that BTC will have to flip $65,000 for market confidence to return.

What Next for Bitcoin?

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BTC/USD Daily Chart | Source: Tradingview.com

Bitcoin has formed a bullish engulfing pattern on the daily chart, with a large green candle confirming the buyers’ return.

Impressively, BTC has strong support at the $61,315 price level which has acted as a price pivot supporting its recovery.

Also, Bitcoin is testing the $65,166 resistance level and a break above it will lead to the reclaiming of higher highs.

Notably, Bitcoin is trading above the 200-day Simple Moving Average (SMA) confirming a bullish sentiment.

Also, the wick of today’s candle is moving above the 50-day SMA indicating short-term pressure from the buyers.

Additionally, the RSI indicator is rising from the neutral zone to the buy zone with a value of 55.03.

Therefore, BTC will likely break above the $65,166 resistance level to enter the overbought region in the coming days.

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