The latest US CPI data could impact the crypto market action for the short term, but the effects aren’t prominent in the market yet.
The crypto market stayed at almost the same levels in the last 24 hours, with most tokens static around their previous trading ranges. The crypto market action could be led by the US CPI data, monetary policy decisions, and regulatory clarity. The inflation data of the US was released, but it hasn’t seeped in through the crypto market yet.
Bitcoin’s test at $28,000 could be a major reason for its downward trend. Though overall returns from Bitcoin have stayed bullish in 2023, it has more room for further returns. BTC would need key support from bulls at $28,000 and $30,000. If it is able to consolidate above $30,000 this year, it can aim to breach its all-time highs.
The period of high-interest rates ongoing in the world has affected crypto as well. Even after, coupled with regulatory setbacks for crypto and legal issues, the market has still maintained an upward trend. With the US CPI data showing a slight increase in inflation, central bankers reevaluate their policy to pause rate hikes.
For now, holding on to $26,800 is critical for Bitcoin. While it may rally to $29,000 -$30,000 on the topside, its support levels around $26,000 is also necessary.
BTC/USD 1D price chart
Bitcoin is currently trading at around $26800 on October 13, 2023, with BTC/USD trading lower by 0.1% in the last 24 hours. BTC/USD is trading lower than its 20-day EMA (27,024.04), as BTC’s 24-hour volume was at around $ 8 billion.
Bitcoin has seen around 62.10% returns on a year-to-date basis. 7-day returns for BTC stands at -2.7%, while its 100-day EMA was at around $27,952.50. Bitcoin’s overall market capitalization is trading around $522 billion, and the crypto market cap is above $1.08 trillion.