Bitcoin price saw a significant drop below the $60,000 level after the release of the US Consumer Price Index (US CPI) data.
The data, which showed inflation rising by 2.9% year-on-year, supported the US Federal Reserve's move to cut interest rates next month.
This trend could create a favorable environment for investing in risky assets such as Bitcoin, despite the current economic challenges.
Impact of inflation data on Bitcoin
The latest CPI reading confirmed expectations of a slight rise in inflation, increasing the possibility of a rate cut by the US Federal Reserve.
With interest rates in the United States remaining at their highest levels in decades, financial conditions have improved as inflation has slowed.
But at the same time, markets are facing challenges as signs of a slowdown in the US economy emerge, especially after the release of employment data that raised fears of a possible recession.
Bitcoin and price resistance
Although Bitcoin price has fallen below the major resistance levels at $60,000, analysts believe that a price rebound to higher levels is possible under favorable economic conditions.
Factors supporting this possibility include the halt of the sell-off caused by Bitcoin miners after the halving, and the hash rate returning to new record highs.
Indicates an improvement in miners' outlook and a decrease in selling pressure.
Bitcoin Future Prospects
Technical indicators suggest that Bitcoin could break the $70,000 barrier again.
According to a recent report, the MACD indicator for Bitcoin’s movements has moved to a positive value, which increases the chances of a price rebound in the coming months.
The Relative Strength Index (RSI) is also showing signs of price recovery after an excessive sell-off, supporting expectations of a potential upside.
In conclusion, while Bitcoin price is facing pressure from economic changes, technical and economic factors suggest that a rebound to higher levels is still possible.
If economic conditions continue to improve, we may see Bitcoin price break the $70,000 barrier in the near future.
