The crypto market is slightly down today as a decent drop in Bitcoin prices has shaken the bullish momentum. After reaching yearly highs close to $38,000, the bears jumped in action, causing a slight pullback in prices. The star crypto now appears to be heading towards the immediate support zone, which is extremely pivotal at the moment. Therefore, the upcoming couple of days may be very crucial for the BTC price rally.
In a major blow, the Bureau of Labor Statistics is about to release fresh CPI data, and this is expected to have a decent impact on the Bitcoin price and the entire crypto space. The overall CPI is predicted to decline from 3.7% in September to 3.3% in October. The core CPI is expected to remain at 4.1%, and a higher-than-expected CPI could influence the Fed to consider more hikes.
How will this impact the crypto space?
The US dollar valuation may be affected based on the CPI data. A higher inflation rate could strengthen the USD, while a lower one might weaken it. Some analysts suggest a surprising increase in core inflation could lead to a more hawkish Fed stance, which may potentially boost the USD’s strength. This could be a huge matter of concern for the crypto markets and BTC prices.
In the short term, the BTC price is plunging and heading towards lower support on the rising channel. Besides, the RSI is also heading towards lower support, which may further drag the price down. However, the US CPI has always triggered volatility within the crypto space and hence a rebound in the Bitcoin price can be expected. This could lift the price back above $36,000 after marking a daily low slightly below these levels.
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