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.