Bitcoin Hits $66,700 with CPI Data Boost, Struggles to Break Range
Bitcoin price surged to $66k following CPI data, yet it remains range-bound.
FUNDAMENTAL OVERVIEW:
On Thursday, the price of Bitcoin experienced an increase, buoyed by a weaker dollar following relatively softer consumer inflation data for April. However, the cryptocurrency stayed within a stable range as overall sentiment towards the crypto market remained subdued.
Over the past 24 hours, the largest cryptocurrency globally saw a 4% increase. It reached as high as $66,700 before experiencing a slight loss of momentum.
Bitcoin price found support in the weakening dollar following CPI data.
Bitcoin bounced back on Wednesday after dropping to as low as $60,000 earlier in the week.
The recovery was primarily driven by a decline in the dollar, which reached its lowest point in a month following softer consumer price index data for April.
The data, accompanied by weaker-than-anticipated retail sales figures, sparked some optimism that inflation might ease in the upcoming months, providing the Federal Reserve with more assurance to consider interest rate reductions.
However, inflation remained significantly above the central bank’s annual target range of 2%. Several Fed officials cautioned recently that the bank would require stronger confidence before considering rate cuts.
This sentiment restrained significant Bitcoin gains, maintaining the cryptocurrency within a $60,000 to $70,000 trading range established over the past two months. Despite Wall Street hitting record highs, increased risk appetite did not translate into crypto markets.
BITCOIN TECHNICAL ANALYSIS DAILY CHART:
Technical Overview:
Bitcoin is trading within a up channel.
Bitcoin is moving above all the Moving Averages (SMA).
The Relative Strength Index (RSI) is in the Buying zone, while the Stochastic oscillator suggests a Positive trend.
Immediate Resistance level: 67174
Immediate support level: 65545
HOW TO TRADE BITCOIN
Bitcoin experienced a sharp rise but encountered resistance at a particular level where it faced rejection upon each attempt to breach. Subsequently, Bitcoin broke out to the downside but couldn’t maintain that position for long, reversing back upwards. Currently, it has surpassed the initial resistance and is moving towards the second resistance level.