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Bitcoin Holds the Line as CPI Uncertainty Looms, Volatility Ahead?

Bitcoin's Mayer Multiple Signals Key Support Level at $66,000
  • Bitcoin struggles near $96K, with key support at $92K; a breakout above $104K could fuel a rally, while a drop risks deeper losses.
  • The Ichimoku cloud suggests support near $87.5K, but fading momentum raises caution amid CPI-driven volatility.
  • Traders eye CPI impact as Bitcoin’s range tightens; market sentiment hinges on breakout direction from current consolidation.

With traders expecting volatility after the Consumer Price Index (CPI) report, Bitcoin is stuck in a range. Right now, the market is against support at $92,000 and resistance at $104,492.70. The next move in Bitcoin could be determined by a breakout from this area.

Price Action and Key Resistance Levels

Bitcoin is hovering near $96,168.20, showing signs of indecision. The Ichimoku analysis highlights a descending trendline resistance that has rejected multiple breakout attempts. This trendline suggests persistent selling pressure at higher levels.

Moreover, the price structure exhibits lower highs, signaling potential weakening bullish momentum. The Ichimoku cloud (Kumo) extends into the future, offering support near $87,486.57. This level remains crucial for sustaining bullish sentiment.

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Source: Titan Of Crypto

Besides, the Tenkan-sen and Kijun-sen are above the cloud indicating a bullish trend. However, the Chikou Span (orange line) suggests fading momentum. If Bitcoin fails to hold above $92,000, a deeper pullback toward the cloud’s upper boundary could follow.

Breakout or Breakdown? Key Levels to Watch

The primary trading zone lies between $92,000 and $104,492.70. A decisive breakout above $104,492.70 could trigger a fresh rally, pushing Bitcoin toward new highs. Conversely, a breakdown below $92,000 may lead to further downside, with the next key support at $87,486.57.

Additionally, a dynamic support level is provided by the Kijun-sen. Bullish continuation is still feasible as long as Bitcoin stays above this line. A decline below this level, though, would signal further intense bearish pressure.

Market volatility is increased by the uncertainty created by the CPI announcement. Traders ought to keep an eye on how Bitcoin responds to inflation data. Because CPI figures have an effect on macroeconomic sentiment, they have historically affected the price movement of Bitcoin.

Market Sentiment 

Bitcoin’s sideways movement indicates a cautious market phase. Buyers defend support zones, while sellers maintain resistance levels. Consequently, a breakout in either direction will dictate future market momentum. Maintaining support above $92,000 could strengthen bullish sentiment, while a break below this level may trigger further downside.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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