The upcoming week is crucial for Bitcoin ($BTC), as the United States Consumer Price Index (CPI) is set to be released. Bitcoin’s price has encountered a significant hurdle in breaking through the $30,000 resistance zone. Despite attempting to do so, BTC was met with a rejection near $29,750, resulting in a fresh decline.
As a consequence, Bitcoin’s price has witnessed a clear move below both the $29,200 and $29,000 levels. The cryptocurrency is currently trading near the critical $28,000 support level, and its future trajectory remains uncertain.
Recent trends have shown that in five out of the last six CPI readings, the results were either in line with or lower than the market’s expectations. Interestingly, following these readings, Bitcoin witnessed a surge in value in the immediate aftermath. However, if the upcoming US inflation data falls below market expectations, it could potentially lead to a decline in Bitcoin’s price, possibly taking it further down. Overall, this week is expected to be a crucial one for the markets, with these key events potentially influencing the direction of the market.
Keep an eye on these events this week
This week, investors will be keeping a close eye on several significant events, including the release of critical economic data. On Wednesday, the CPI’s inflation data is set to be announced, followed by the Producer Price Index (PPI) inflation data on Thursday, alongside the jobless claims data. Furthermore, on Friday, the Consumer Sentiment data is set to be released, providing additional insights into the state of the US economy.
In addition to the economic data, investors will be monitoring four Federal Reserve speakers who are scheduled to provide commentary throughout the week. As Q1 nears, this week is also the last week of earnings reports, with investors eagerly anticipating the results of several major companies.
At the time of writing, Bitcoin is hovering above the $28k level.
By Qadir AK | Original Link