Bitcoin is ready to breakout from the current consolidation range on CPI data.
Crypto Bazaar is closely looking at the release of January Consumer Price Index today American labor departmentBitcoin (BTC) is expected to trigger a breakout from its $ 90 – $ 110K consolidation range.
The CPI Report 13:30 is slapped for release on UTC and is estimated to show a slight month-month growth of 0.3%, a marginal decrease from December 0.4%.
This reading will probably be an important factor to affect the next interest rates of the Federal Reserve. According to the fedwatch tool of CME, currently 54% of the possibility that the fed may either reduce rates or leave them unchanged this year.
If the CPI report is less than expected, it will probably trigger a weak US dollar and a weak US dollar. Both results are expected to increase the demand for risky property like bitcoin, which is recently consolidated between $ 90,000 and $ 110,000.
In Recent posts on XMartinez reported that “BTC accumulation trend score is near zero, a sign of a period of consolidation. The change in demand here may determine the platform for the next big step!”
This suggests that investors are waiting for a catalyst for the price to be potentially served as that catalyst, with the upcoming CPI report.
While investors hopefully a positive CPI report can promote bitcoin, the indicators of inflation show that high inflation may occur on the horizon. This can limit the ability of aggressively cutting rates, reducing expectations for a constant bitcoin rally.
