Bitcoin Price Forecast with Release of US Core Inflation Rate Bullish or Bearish

Bitcoin Price Forecast Following US Core Inflation Rate Announcement – Optimistic or Pessimistic?
Bitcoin (BTC/USD) is currently trading at $69,615, with experts keeping a close eye on the upcoming reveal of the US Core Inflation Rate. This economic indicator is crucial in shaping market sentiment and has the potential to significantly sway Bitcoin’s direction.
Investors are eager to gauge how the inflation data will influence Federal Reserve policies, subsequently impacting the US dollar and potentially driving Bitcoin prices. This analysis delves into whether the latest inflation figures will bolster a positive or negative Bitcoin price outlook.
US Core Inflation Rate Unveiled
Bitcoin (BTC/USD) is presently priced at $69,613, indicating potential for further upward momentum. Alongside these technical considerations, upcoming economic data releases could have a notable impact on Bitcoin’s valuation.
The United States is set to release its Core Consumer Price Index (CPI) month-over-month data at 12:30 PM, with expectations of a 0.2% increase, down from the previous 0.3%.
Forecasts suggest the CPI month-over-month will remain steady at 0.0%, compared to the prior 0.1%.
The year-over-year CPI is predicted to rise by 3.3%, slightly below the previous 3.4%.
These inflation metrics are critical as they influence Federal Reserve decisions. Lower-than-expected inflation figures could prompt a more accommodative stance from the Fed, potentially weakening the US dollar.
A weaker dollar typically boosts Bitcoin prices, making it an attractive choice for investors seeking an alternate store of value.
Conversely, higher inflation readings could lead the Fed to maintain or raise interest rates, potentially strengthening the dollar and exerting downward pressure on Bitcoin.
Federal Open Market Committee (FOMC)
Anticipation is high for the Federal Open Market Committee (FOMC) meeting and the Federal Reserve’s announcements at 18:00.
Key elements include the Federal Funds Rate decision, expected to remain at 5.50%, the FOMC Economic Projections, and the FOMC Statement.
These events are pivotal as they will offer insights into the Fed’s future monetary policy direction. A dovish stance from the Fed, hinting at a pause or slowdown in interest rate hikes, could weaken the US dollar.
This scenario generally favors Bitcoin, as a weaker dollar enhances its appeal as an alternative asset.
On the other hand, a more hawkish signal from the Fed, indicating the maintenance or acceleration of the current rate hike pace, could strengthen the dollar, potentially pressuring Bitcoin prices downward.
The forthcoming FOMC meeting and Fed announcements will be decisive. A dovish outcome could uplift Bitcoin, while a hawkish stance could present challenges.
Bitcoin Price Outlook
Bitcoin (BTC/USD) is currently trading at $69,613, suggesting potential for further bullish momentum and indicating an optimistic Bitcoin price prediction.
The 4-hour chart highlights a significant breakout above the downward trendline at $69,500, supported by a bullish engulfing candle.
This technical pattern implies that the market may witness more upward movement in the near future.
Key price levels to monitor include a pivot point at $69,500. Immediate resistance is identified at $70,099, followed by subsequent resistance levels at $71,707 and $72,921. These levels are essential in determining Bitcoin’s potential upward trajectory.
On the downside, immediate support is situated at $68,472, followed by $67,152 and $65,955. These support levels will be crucial in the event of a bearish correction.
Technical Indicators
Further insight into Bitcoin’s current market sentiment can be gleaned from the technical indicators.
The Relative Strength Index (RSI) stands at 57.44, indicating neutral momentum, while the 50-day Exponential Moving Average (EMA) is at $68,983. Trading above this EMA reinforces the bullish outlook for Bitcoin.
In conclusion, Bitcoin appears primed for a potential bullish run if it can hold above the $69,500 pivot point.
A breakout beyond the $70,000 level could pave the way for higher targets at $71,707 and $72,921. However, traders should closely monitor support at $68,472 to manage downside risks.
Maintaining a favorable outlook, Bitcoin could see further gains if these technical levels remain intact.