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%.
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.