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Bitcoin Blasts Past $17.6k on Lower Than Expected 7.1% US Inflation Data

Validated Media

Bitcoin and the crypto markets are again in the green due to the US inflation data coming in lower than expected. Earlier today, the US Bureau of Labor Statistics reported that the Consumer Price Index (CPI) rose by 0.1% in November after increasing by 0.4% in October. In addition, the annual CPI came in at 7.1%, a considerable drop from last month’s 7.7%.

The US Bureau of Labor Statistics added that the 7.1% was the smallest 12-month increment since the period ending December 2021.

A lower November CPI means that the US Federal Reserve could henceforth consider lower interest rate hikes to tame inflation rather than the usual 0.75% monthly increments.

Bitcoin Breaks Past the $17.6k Resistance Level

News of November’s US CPI data coming in lower than expected resulted in a knee-jerk reaction in the crypto markets, despite the bearish news of FTX’s Sam Bankman-Fried, being arrested in the Bahamas.

Bitcoin opened the day at roughly $17,150, only to blast through the $17.6k resistance level to a local peak of $18k due to the lower CPI.

The move up was significant given that $17.6k was a crucial resistance level that served as support in late June after the massive Terra ecosystem collapse. Bitcoin claiming this level as support could open the doors towards a slow climb to $19k or even $20k.

Bitcoin’s 50-day MA is Offering Short Term Resistance at $18k

A glance at the one-day BTC/USDT chart below reveals that Bitcoin’s 50-day (red) moving average is offering considerable resistance at the $18k price area.

Source, Trading View

However, the daily MFI (green), MACD and RSI (red) are yet to hint at exhaustion. Consequently, a push higher to the 100-day (yellow) moving average of around $19k is possible if the current momentum is maintained.

Bitcoin Bitcoin $81,159.24
-2.58%
Bitcoin BTC
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