The US Consumer Price Index (CPI) rose 2.3% in April, which is less than the predicted 2.4% that economists had forecast. Bitcoin (BTC) climbed back above $103,000 and is continuing to accumulate above $100,000, perhaps with a view to an assault on the all-time high of $109,000 in the next several days.
Lower inflation rise, but tariffs impact still to be felt
Some may have expected to see inflation start to rear its ugly head again on the back of the tariff wars. However, April’s CPI figure has come in lower than expected, and economists are saying that it may be a few months before the full effect of the tariffs are felt.
Even with this lower than expected rise in inflation, the Federal Reserve may still not make the cuts that the Trump Administration needs. Being able to say that the impact of the tariffs is too uncertain on future inflation could provide the cover needed to just sit back and do nothing.
NBC News reported Federal Reserve Governor Adriana Kugler as saying “ultimately, I see the U.S. as likely to experience lower growth and higher inflation.”
$BTC crabs sideways between major levels
Source: TradingView
The short-term time frame for $BTC shows that the price is caught between the two major horizontal levels of $202,000 and $204,000. A couple of quick dips below $101,000 were bought up very quickly, as witnessed by the two candle wicks down to the support of the 0.382 Fibonacci level.
Given the importance of these two levels, it wouldn’t be surprising to see the $BTC price crabbing sideways between them for a while. The longer this goes on, a breakout in one direction or the other could be explosive, especially if it is to the upside.
Last resistance level at $104,000 is all that is detaining $BTC price
Source: TradingView
As always, zooming out into the higher time frame puts everything into perspective. One only has to look back at the previous bull flag and how once the price held above the upper trendline, a strong surge to the upside was what followed. Once that surge started losing momentum, the next bull flag began to be formed.
It would seem that all that is detaining the price right now is that last level of resistance at $104,000. If the bulls can force the price above this level and hold it, the surge out of the top of the bull flag can resume.
Below the chart, the RSI is showing the indicator is above the yellow moving average. This needs to continue. Right at the bottom of the chart, the MACD is displaying the next green bar and the indicator lines have crossed up. All is set, and lift-off may not be too far away.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
