- Analysts remain carefully optimistic, with Michael van de Poppe pointing out a possible trend reversal if Bitcoin tests $ 84K again and reaches a new high.
- Justin Bennett emphasized the recovery of Bitcoin over $ 81,500, which was driven by lower than expected inflation data, and indicated that Bitcoin $ 88k or even $ 92K could reach.
The highly expected report on the US consumer price index (CPI) for the month of February has finally been published and indicates a cooling of the US inflation, since the CPI numbers have dropped to 2.8 % of 3 % before. In response to this, the Bitcoin price quickly rose over $ 84,000.
Forced the inflation decline in interest rate reductions of the FED?
In February, the core inflation, which excludes the effects of food and energy prices, increased by 0.2 % compared to the previous month, which dropped the annual inflation rate from 3.3 % in January to 3.1 %. Despite this decline, economists warn that the customs policy of President Trump could exercise an upward pressure on prices in the coming months.
The decline in US inflation numbers comes at a time when the markets largely assume that the Federal Reserve will be retained its current interest rate level. According to the Fedwatch tool of the CME Group, retailers are likely to see a low probability of reducing interest during the upcoming FED session next week.
Fed chairman Jerome Powell warned last Friday that the already entered into force and the planned tariffs could lead to a wave of price increases. This could in turn lead to higher inflation expectations among consumers.
After a number of interest reductions, the Federal Reserve has suspended further adjustments and kept the key interest rate stable within a range of 4.25 % to 4.50 %.
Will Bitcoin resume his upward trend soon?
Crypto analyst Michael van de Poppe has given an optimistic outlook on Bitcoin course development. In a current analysis, van de Poppe emphasized that the Bitcoin chart remains strong despite the current market conditions.
“To be honest, Bitcoin’s chart is not bad. Test another 84,000, make a new one and we could reverse the trend. ”
However, the Bitcoin course has again experienced a rejection of $ 84,000. At the editorial deadline, BTC lists $ 1.63 billion at $ 82,503.16. Daily turnover has also dropped by 25 % to $ 45.64 billion, which indicates a low interest of investors.
Cryptoanalyst Justin Bennett emphasized the recent recovery of Bitcoin and referred to the successful reconquest and the renewed test of the brand of $ 81,500. Bennett attributed the positive market mood to the latest report on the US consumer price index, which was lower than predicted, which was a relief for risk systems according to the higher than expected figures in January. Bennett:
“I can imagine $ 88k and possibly also $ 92k”
