As of today, Bitcoin is trading at approximately $110,479. Investors are treading lightly as they anticipate two pivotal macroeconomic events: the release of the U.S. October Consumer Price Index (CPI) report and the upcoming Federal Reserve policy meeting next week. These events could significantly influence whether the inflation landscape has softened enough to warrant the long-awaited interest rate cuts, which may, in turn, establish the groundwork for Bitcoin’s next major movement.
Bitcoin Price Prediction Ahead of CPI Report Release
The value of Bitcoin appears to be closely aligned with expectations from the upcoming CPI data. A lower-than-anticipated CPI reading could serve as a bullish catalyst, potentially boosting Bitcoin above the $112,000 mark. On the flip side, a higher-than-expected CPI might temporarily pull the market down, retesting support levels near $107,000.
Traders are highlighting specific intraday levels for potential trading strategies. A dip towards $110,200 could be seen as a buying opportunity, while a rebound around $109,700 might present another favorable entry point. However, should Bitcoin drop below $109,300, it may be prudent to reassess short-term positions. Overall, cautious optimism prevails, provided that key resistance levels are surpassed.
BTC Price Analysis Today
Bitcoin has been relatively stable within a range of $100,000 to $120,000 for nearly six months. Crypto analyst Michael van de Poppe indicates that this phase of low volatility may be reaching its conclusion. He mentions that Bitcoin is “approaching a significant volatility shift” as broader economic conditions evolve.
Van de Poppe drew comparisons to 2021, noting that while Bitcoin currently trades at $110,000 amidst interest rates of about 4–4.5%, it previously reached $69,000 when interest rates were near zero. If interest rates decrease further, he expects Bitcoin could experience a substantial upward movement.
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From a technical perspective, Bitcoin’s relative strength index (RSI) is positioned around 43, implying potential growth opportunities. Additionally, diminished trading volumes may indicate a buildup leading to an impending breakout. Analysts consider $107,000 as a crucial support level, with $112,000 identified as the key resistance point to monitor in upcoming days.
Market analysts emphasize that $112,000 is the pivotal breakout area. The 150-day exponential moving average (EMA), a reliable long-term trend indicator, continues to support bullish sentiments. As long as Bitcoin stays above the vital support level of $107,000, the likelihood of a substantial uptrend remains heightened.
On-Chain Data Signals BTC Price Pullback
Analyst Ali Martinez noted that Bitcoin has recently slipped below its Short-Term Holder (STH) Realized Price, a metric that can often foreshadow deeper corrections. If historical patterns hold, Bitcoin might briefly retrace towards the Long-Term Holder (LTH) Realized Price, estimated near the $37,000 mark, before resuming its upward trajectory.
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FAQs
Bitcoin’s price tends to react strongly to U.S. inflation data; a lower CPI raises hopes for interest rate cuts, creating buying momentum, while a higher CPI can lead to short-term price declines.
Traders are monitoring dips around $110,200 or $109,700 as potential entry points, but caution is recommended due to short-term volatility surrounding the CPI report.
Indeed. On-chain data suggests that short-term holders may be under pressure, indicating a likely pullback before a possible recovery towards long-term bullish targets.
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