Why did BTC plummet, and how will it move after the CPI data is released tonight?
Powell emphasized last night that the Federal Reserve is not in a hurry to adjust interest rates, and that the neutral interest rate has risen, which means the Fed will pay more attention to data and market reactions.
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The market has anticipated that the Federal Reserve will maintain a relatively robust interest rate hike attitude for the foreseeable future, leading to pessimism regarding expectations of rate cuts.
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Additionally, the CPI data to be released today is expected to bring significant volatility to the market. As a result, some risk-averse funds, anticipating that the CPI data will underperform given the ongoing inflationary pressures, are withdrawing from the market, triggering last night's plunge.
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BTC Technical Analysis
Currently, we still need to pay attention to the support and resistance exchange level around 97000. The overall large-scale trend remains a consolidation upwards.
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If today's CPI data is better than expected, it could easily stabilize in the 97000 range and push towards 100000.
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If the CPI data underperforms expectations and market sentiment turns pessimistic, prices may break below the 94000 level (accumulation area).
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Therefore, it is crucial to monitor price changes in the hour before and after the data release.
