The recent CPI inflation data came in at 2.5% year-over-year, almost exactly as expected, with only a slight difference from the forecast of 2.6%. Despite this, the report didn’t cause any major reactions in the market.
Shifting to Bitcoin, Josh from Crypto World analyzed that while Bitcoin remains above its support levels, it hasn’t yet managed to break through key resistance points. The broader bearish trend is still in play, but some short-term bullish momentum is beginning to show.
Key Resistance and Support Levels
Bitcoin’s major support is around $52,500, while resistance sits near $68,000. On a 2-day chart, Bitcoin is fluctuating within this range without much movement. It recently broke through the $56,000-$57,000 range and has successfully retested this zone.
Though Bitcoin briefly dipped below $56,000, it closed above this level on the daily chart, turning it into a new support. As long as Bitcoin stays above this mark, the short-term outlook is bullish, even if the longer-term trend remains bearish.
If Bitcoin maintains this support, the next resistance levels to watch are $59,500, $60,000-$61,000, and $64,500. However, a close below $56,000 could reverse the short-term bullish momentum and return the market to a bearish tone.
Are Bears Waiting for Their Chance?
In the past, a similar setup led to a small dip before Bitcoin rebounded. For another bearish signal to take hold, we would need to see a few consecutive red candles. If that happens, it could disrupt the current bullish sentiment.
Josh also noted that Bitcoin recently crossed a significant liquidity level around $58,200. However, there’s not much liquidity left for the market to chase. Many traders remain bearish, as evidenced by negative funding rates, which could set the stage for a short squeeze. If Bitcoin continues to rise, bearish traders may be forced to buy back, pushing prices higher.
Not a financial advice, also includes third party opinion.