Bitcoin has continued to go through a suppressed trading range, hanging above $27000, with the reduced crypto market liquidity playing a role.
Bitcoin did not show any immediate signs of recovery, while it traded above $27000 for consecutive days. It has been almost stationary in the zone, most likely due to the falling crypto market liquidity in the last few days. On the upside, Bitcoin’s support at the current levels is unlikely to give away for further dips.
Analysts expect the crypto market to surge in the coming few days, with an improved outlook from the United States regarding inflation. Inflation fell to 4.9% in April from 5% the previous month, while the US Consumer Price Index rose by 0.4% from a 0.1% increase in March. The decreasing inflation rate could be responsible for pausing interest rate hikes in the next month, which could inject immediate crypto market liquidity.
Several altcoins in the crypto market were either static or underwent minute changes. Polkadot, Litecoin, and Solana registered small gains with others, while those like ETH fell by 0.8%.
With Bitcoin being volatile historically around the release of inflation reports, the same can be expected within this. With its present trading range between $27000 and $27700, bulls could aim to propel Bitcoin above $28000 within this week.
BTC/USD 1D price chart
Bitcoin is currently trading at around $27400 on May 11, 2023, with BTC/USD down by around 0.6% in the previous 24 hours. The crypto market liquidity could get a major boost in the next few days as bulls and bears gear up for their positions after receiving clarity from the inflation reports. BTC/USD is trading above its 20-day EMA (28.586.36) as BTC’s 24-hour volume remained static at around $12.9 billion.