The post Bitcoin Price Tests Support Of This Pattern Amid Rising Inflation! Will BTC Price Plunge Hard? appeared first on Coinpedia Fintech News
Bitcoin has been experiencing a downward trend for over 48 hours as investors eagerly awaited the release of CPI data. Following the recent release of CPI data, which surpassed expectations, BTC’s price felt the pressure and extended its decline towards weekly support levels. Analysts are now expressing concern, as breaching the pattern’s trend line could trigger bearish control.
Bitcoin Struggles Amid Rising Inflation
Following the U.S. Bureau of Labor Statistics’ report of a 0.4% rise in the Consumer Price Index for March, both Bitcoin and Ethereum experienced declines exceeding 2.5%. This indicates that inflation in March remained almost the same as it was in February, standing at 3.5%, as per the latest data from the Bureau of Labor Statistics (BLS).
High inflation rates pose challenges for both crypto markets and stocks. This is because if inflation stays higher, it’s unlikely that the U.S. Federal Reserve will decrease federal interest rates. The existence of high interest rates strengthens the attractiveness of traditional safe investments like treasury bonds compared to crypto assets.
At a Stanford University event, Federal Reserve Chairman Jerome Powell expressed confidence that the Fed wouldn’t increase rates in the short run. However, he also highlighted that there’s no urgency to decrease rates either. Last week, the U.S. Bureau of Labor Statistics provided an update on employment data, indicating a rise in payrolls for March with the unemployment rate remaining steady at 3.8%. Despite this, the announcement didn’t do well for crypto markets, which experienced a decline last week.
Over the last 4 hours, the crypto market witnessed heavy short liquidation as the amount exceeded $73 million, suggesting rising dominance by bears. However, as Bitcoin reaches new weekly support lines, buyers continue to accumulate and defend further drops.
What’s Next For BTC Price?
Bitcoin price struggled to hold the momentum above the symmetrical triangle pattern as whales put pressure on the chart and plunged the price below Fib channels. As a result, Bitcoin has been declining heavily and is facing a lack of buying pressure for a rebound. As of writing, BTC price trades at $68,728, declining over 1.03% in the last 24 hours.
The BTC/USDT pair is currently retesting the pattern’s ascending support line at $67K. While buyers are strongly defending the support line, a decline below this level could set the stage for the pair to trigger intense selloff, leading to a decline toward the support zone of $64.2K-$62K.
To invalidate the bearish decline, buyers need to act quickly and make a comeback from the support line. If the BTC price successfully retests the ascending support line at $67K, buyers will attempt a rebound and attempt a surge above $70K. In such a scenario, Bitcoin might head toward its ATH near $74K and test buyers’ patience.
