Main navigation

Here's Why Bitcoin (BTC) Suddenly Regained $28K: Details

Wed, 05/10/2023 - 13:50
article image
Tomiwabold Olajide
Bitcoin (BTC) has returned to trade above $28,000 mark
Here's Why Bitcoin (BTC) Suddenly Regained $28K: Details
Cover image via

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.

Read U.TODAY on
Google News

Bitcoin suddenly regained the $28,000 mark on May 10, following the release of the lower-than-expected CPI. At the time of writing, BTC was up 1.31% in the last 24 hours to $28,176.

The lower-than-expected reading potentially gives the Fed room to pause interest rate increases soon, analysts believe.

The United States announced that the CPI annual rate for April was 4.9%, slightly lower than the anticipated figure of 5.0% compared to last month's data. Meanwhile, the core CPI annual rate in April was 5.5%, in line with expectations, while the previous rate was 5.6%.

Bitcoin: Here's What Might Push BTC Price Higher, Analyst Says

Following the release of the lower-than-expected CPI, the likelihood of no rate increase in June has increased to 92%, per CME data. U.S. inflation eased slightly in April, which may give the Fed room to pause rate hikes soon.

The majority of cryptocurrencies also traded in the green at press time, making a sudden recovery from prior-day lows.

What's next for BTC price?

The BTC price fell to a low of $27,629 on May 8. The bulls put in a recovery attempt, but their efforts were unmatched by the bears. With the recent CPI announcement, Bitcoin made a jump to intraday highs of $28,334, up from lows of $27,500.

In the past, there has not been a lot of demand below the present price until roughly $24,000, per IntoTheBlock. This would imply that if the BTC price continues to decline below current levels, there might not be strong buying support until around $24,000.

In contrast, stronger buying is observed in the ranges up to $30,000. This is consistent with on-chain data that suggests long-term holders are not selling at these prices. Analysts at IntoTheBlock believe that if the price moves upward, these levels may signal additional buying pressure rather than forming resistance during a move higher.

article image
About the author

Tomiwabold is a cryptocurrency analyst and an experienced technical analyst. He pays close attention to cryptocurrency research, conducting comprehensive price analysis and exchanging predictions of estimated market trends. Tomiwabold earned his degree at the University of Lagos.