Now that Bitcoin has reclaimed its support level above $26,000, all eyes are on the potential for a significant breakout. Yann Allemann, co-founder of analytics firm Glassnode, believes the cryptocurrency is positioned to exit a multi-week range and push toward the $30,000 mark.
The U.S. Consumer Price Index (CPI) data showed a 0.6% jump, which is now expected to impact Bitcoin prices in the near future.
The road to $30K?
According to Allemann, the market sentiment around Bitcoin is shifting positively. Risk Signal's drop into the 60s signifies this changing attitude.
Some resistance and profit-booking pressure are expected around the $27,400 and $28,200 levels, but Allemann suggests that these are merely hurdles before the cryptocurrency tackles the significant psychological barrier of $30,000.
CoinGecko data places Bitcoin's current market cap at over $514 billion, with a 24-hour trading volume of approximately $8.16 billion, underscoring the substantial financial stake involved.
The CPI factor
The U.S. CPI increased by 0.6% in August, led primarily by a surge in gasoline prices. This advance accounts for more than half of the uptick, with gasoline peaking at nearly $4 per gallon. The CPI's year-on-year advance is 3.7%, with core CPI climbing by 0.3%.
The inflation data comes a week before the Federal Reserve's policy meeting, where it's likely to leave interest rates unchanged. Although inflation has increased, an immediate intervention from the Federal Reserve is unlikely.
Denys Serhiichuk
Tomiwabold Olajide