During the U.S. trading session, Bitcoin (BTC) continued its downward trend, falling sharply below $59,000 to an intra-day low of $58,930. This significant drop correlates with the U.S. Consumer Price Index (CPI) figures for September, which revealed inflation rose by 2.4%, exceeding the anticipated 2.3%.
Impact of Rising Inflation on Bitcoin’s Price and Market Sentiment
The unexpectedly high inflation numbers have raised worries about a potential hawkish approach from the Federal Reserve, possibly delaying anticipated interest rate cuts. This uncertainty has negatively impacted market sentiment, leading to a wider selloff in the cryptocurrency market and further depressing Bitcoin prices.
The CPI data for September indicated that inflation did not decline as anticipated. The monthly inflation rate remained steady at 0.2%, aligning with previous months, while the yearly rate hit its lowest point since February 2021. The Core CPI, which omits volatile food and energy prices, also climbed to a year-over-year rate of 3.3%.
Following the CPI announcement, Bitcoin’s price declined by more than 2%, momentarily dropping below $59,000 over the last 24 hours, contributing to a broader cryptocurrency market selloff. Currently, the market anticipates an 84% likelihood of a 25 basis point rate cut by the Federal Reserve in their upcoming November meeting, a shift from earlier expectations of a larger reduction.
The U.S. 10-year bond yield rose to 4.073%, while the U.S. Dollar Index fell by 0.10% to $102.595, illustrating the current financial landscape. Consequently, the unexpected inflation rise could heighten market volatility for Bitcoin, potentially pushing its price even lower. If the Federal Reserve adopts a more hawkish stance, Bitcoin may struggle to regain momentum and risk further declines below $60,000.
Regulatory Pressure Weighs on Bitcoin Price and Market Sentiment
In addition to inflation concerns, recent regulatory actions have exerted additional downward pressure on Bitcoin’s price. The Department of Justice has charged several market makers for market manipulation, which, along with SEC Chair Gary Gensler’s remarks about the crypto sector being filled with “fraudsters,” has intensified investor anxiety.
Market sentiment surrounding Bitcoin has turned increasingly negative. Analysts, including Lekker’s Thompson, suggest that ongoing regulatory scrutiny could keep Bitcoin’s price stagnant until after the U.S. elections in November. The combined pressure from legal actions and unfavorable regulatory commentary may hinder any significant price recovery in the short term.
Bitcoin Bounces 0.82% but Faces Strong Resistance at $61,000
Currently, Bitcoin (BTC/USD) trades at approximately $60,150, having gained 0.82% today after reaching a low of $59,530. The price remains below the 50-day Exponential Moving Average (EMA) at $62,080, indicating strong resistance.
Despite the recent bounce suggesting potential short-term bullish momentum, the price remains capped by the $60,740 resistance level. A decisive breakthrough above this resistance could target the next levels at $61,240 and $61,985.
Immediate support is identified at $59,540, followed by deeper support levels at $58,880 and $58,350. The Relative Strength Index (RSI) has risen to 40, indicating neutral momentum, yet it remains below the crucial 50 mark. A drop below $59,540 may trigger further selling, potentially pushing prices back toward $58,880.
Currently, Bitcoin’s short-term outlook appears cautiously bearish below $61,240, but surpassing this level could shift sentiment towards bullish.
Key Insights
- Support Break: Immediate support at $59,540 is critical; a drop below may result in deeper declines.
- Resistance Levels: A move above $60,740 may facilitate further gains.
- RSI Indicator: Momentum is neutral, but upside potential exists if the RSI exceeds 50.
PEPE Unchained Raises Over $18 Million: New 10x Meme Coin Potential?
In the meme coin market, PEPE Unchained ($PEPU) has gained significant attention, raising $18.4 million in its presale. With only a few thousand dollars left to reach its target of $18.6 million, investors are closely monitoring developments.
Currently, the presale price for the token is $0.00995 per $PEPU, with an anticipated price increase on the horizon. Popular crypto analyst Jacob Crypto Bury has shared insights on $PEPU’s growth potential, noting its strong presale performance and attractive staking rewards.
Bury maintains a neutral perspective but emphasizes that $PEPU’s secure contract audits and an impressive staking Annual Percentage Yield (APY) of 499% position it as a potential top performer in the meme coin arena.
Key Highlights
- Strong Presale Performance: $18.4 million raised so far; nearing $18.6 million target.
- High APY for Staking: Earn up to 499% APY by staking $PEPU tokens.
- Analyst Commentary: Jacob Crypto Bury discusses $PEPU’s potential growth.
With strong investor sentiment, now could be an opportune moment to consider adding $PEPU to your portfolio before the anticipated price increase.
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