Bitcoin price rebounds by 14% as US inflation eases
- Bitcoin has rebounded by 14% after a massive free-fall decline throughout the week.
- US Consumer Price Index rises less than expected in October.
- The health of the uptrend depends on $15,588 remaining unbreached.
Bitcoin price is witnessing an applaudable retaliation following the monsoon-style crash experienced earlier in the week. As the price ascends, investors question whether or not a secure market bottom is in. Key levels have been identified to gauge BTC's next potential move.
Bitcoin price fights back
Bitcoin price has experienced an impressive rally as the peer-to-peer digital currency is up 14% since breaching new yearly lows on November 9. On smaller time frames, BTC still has more work to justify investors placing bids. Still, the possibility of further upside should not be ruled out entirely,
Bitcoin price currently auctions at $17,644. The US Consumer Index Pricing surprised the market as most investors expected a higher reading. At 7.7, the lower-than-expected CPI is an optimistic sign in recent times, but the Fed maintains the rate is still too high to combat rising inflation. Bitcoin's reactionary response to the news suggests that high-cap players are taking a bite at Bitcoin's discounted price.
BTCUSDT 1-Hour Chart
Considering the uptick in transactions on the Volume Profile Index, Bitcoin's next target lies at $19,899 and ptemtially back into the $20,000 range. The uptrend's health is determinant on the swing low at $15,888, remaining untagged. If the bears breach the barrier, a further decline of $14,900 could occur. Such a move would result in a 14% decrease from Bitcoin's current market value.
In the following video, our analysts deep dive into the price action of Bitcoin, analyzing key levels of interest in the market. -FXStreet Team
Author
Tony M.
FXStreet Contributor
Tony Montpeirous began investing in cryptocurrencies in 2017. His trading style incorporates Elliot Wave, Auction Market Theory, Fibonacci and price action as the cornerstone of his technical analysis.
