The queen of cryptos is continuing a bearish direction after a turbulent weekend. Bitcoin (BTC) is stabilizing on a support zone ahead of the CPI, while memecoins are in the spotlight. Here is the bitcoin forecast before the CPI.
Bitcoin (BTC) stabilizes below $28,000
The crypto leader by capitalization has seen a slight correction since the weekend, losing 7% of its value so far. Currently, the price of bitcoin (BTC) is stabilizing around a support zone near $27,500. This is a level that lines up with last week’s low. If the price falls below this range, it would indicate a risk of a monthly close in the red. Additionally, the flagship crypto is expected to experience volatility as investors pay attention to the Fed’s CPI announcement.
Forecasts show that this (annual) inflation rate will be 5%. If the CPI is higher than expected, it could be negative for the queen of cryptos. On the other hand, a lower-than-expected reading could put upward pressure on bitcoin (BTC). In this case, the price of BTC could experience a rise towards $29,000, before a correction. If this is confirmed, a bearish trend until the summer month will be possible. Incidentally, the recent surge in memecoins, like PEPE, is attracting investors’ attention, which could be negative for bitcoin (BTC). Then, the situation of Binance could again initiate a new bear market.
Looming volatility
The previous day’s session was pretty flat for Bitcoin (BTC). However, this could be the calm before the storm as the release of inflation rate data can lead to high volatility. This situation could provide an opportunity for crypto traders. If the support at $27,664 (previous week’s low) is broken, it could signal a bearish trend for Bitcoin (BTC). In this case, the price could end the week down. However, the price might first rise up to $29,000 before correcting and correcting below $27,133.
In this context, it may be worth taking a short position in Bitcoin (BTC) above $29,000. However, if the price breaks above the high of the weekend range, this bearish thesis would no longer hold. In this case, the price of BTC could rise above $31,000.
Admission: $29,296;
Stop: $29,875;
Goal: $27,133.
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