Here’s How Bitcoin Price Reacted to February’s CPI Report

Bitcoin Price: Bitcoin, the leading digital asset by market cap, is in price discovery mode, marking its new all-time high of $72,850 on Monday. The BTC price has been riding an aggressive rally since late january when the price rebounded from $38600. The positive upswing has uplifted the coin 86% to reach the current trading price of $71590. With the rising trading volume, the coin price breached the neckline resistance of the cup and handle pattern, signaling the potential for further growth.

Also Read: Breaking: US CPI Comes Hotter at 3.2%, Bitcoin Price to Fall?

Inflation Rises to 3.2%: Bitcoin Reacts with Volatility

Bitcoin Price| Tradingview

On Tuesday, the US Bureau of Labor Statistics (BLS) disclosed the annual inflation rate in the US, as indicated by the Consumer Price Index (CPI), climbed to 3.2% in February, up from 3.1% in January. 

The Core CPI, which removes the fluctuating costs of food and energy, reported a year-on-year increase of 3.8% for the same month, slightly below January’s 3.9% rise but surpassing the anticipated 3.7%.

Amid the release, Bitcoin witnessed a short surge in volatility as price hit a high of $72628 only to retrace back to $71683. Furthermore, a recent report from Lookonchain reveals a whale withdrew 2,050 BTC ($147.67M) from Kraken 10 hours ago, adding to a total of 10,340 BTC ($742.98M) since March 1. 

This whale withdrew 2,050 $BTC($147.67M) from #Kraken again 10 hours ago.

And he has withdrawn 10,340 $BTC ($742.98M) from #Kraken since Mar 1.https://t.co/Sg0jd05x3q pic.twitter.com/XHk0X6wl6f

— Lookonchain (@lookonchain) March 12, 2024

This accumulation at record levels suggests that savvy investors believe Bitcoin is unlikely to reach an immediate peak.

Also Read: Michael Saylor Says Bitcoin Will “Eat” Gold, Emerging as Top Asset, Price Surges Over $72k

BTC Breakout from Rounding Bottom Signals Major Recovery

An analysis of the daily time frame shows the Bitcoin price developed a bullish reversal pattern called the rounding bottom. This chart pattern often hints at the maturity of a downtrend and a renewed recovery trendline in the market. On March 11th, the BTC price gave a bullish breakout from the pattern neckline resistance of $69275.

If the pattern holds true, the BTC price should chase the theoretical target of $123000.

Technical Indicator 

Pivot Levels: As per the recent price movement, the pivot level projects potential resistances at $77700, followed by $91500.
Average Directional Index: The RSI slope(78%) close to the overbought region indicates the buyers may need occasional pullback to regain strength.

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