The price of Bitcoin (BTC), initially caused by Donald Trump’s proposal to regulate the currency, has seen a significant increase in volatility over recent weeks. trade tariffs This was exacerbated later by the Consumer Price Index (CPI). BTC plunged to $94,000 after the inflation report, before recovering some of its losses. According to Ali Martinez, a crypto analyst, Bitcoin needs to defend a crucial price level in order to prevent a major correction.
Bitcoin Analyst Determines Critical Bitcoin Price Level
In an X post Martinez, who shared his thoughts earlier in the day, brought to light Pi Cycle Top Indicator. The Pi Cycle Top Indicator, for those who are not familiar with it, is a Bitcoin tool designed to help identify the market’s cycle peaks.
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The indicator tracks the 111-day moving average (MA) and a multiple – typically 2x – of the 350-day moving average. The 111-day MA crossing above the 350-day MA 2x is a signal of a top in the market.
Martinez claims that Bitcoin’s price tends to undergo steep corrections when the MA drops below 111 days. This moving average is currently at around $93,400. BTC could experience a significant downturn if it falls below this price.
Merlijn The Trader, a fellow crypto analyst, shared his thoughts about the recent BTC price movement. The analyst revealed the following. chart This graph shows how BTC prices in 2021 and 2020 are similar.
BTC appears to be completing a diamond bullish pattern. If this bullish diamond pattern is completed successfully, a breakout in the direction of BTC may take it to new highs beyond $120,000.
What’s next for BTC?
Crypto trader Daan Crypto Trades has also analysed Bitcoin’s recent price movements, especially in response CPI is a good indicator. This report confirms that the US inflation rate is still high, which reduces the chances of Federal Reserve cutting interest rates in the future. Daan noted:
The most of the liquid below was withdrawn on lower time frames. After all the lower highs in recent weeks, there’s still a large amount of liquidity that is untapped. BTC’s ability to reverse this local downward trend could be the fuel that propels the market higher.
Investors also warn that BTC could fall below $90,000 and enter the a “danger zone.” Bitcoin has repeatedly rebounded from this level. If it is broken, the risks of an even larger drop are increased.
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The recent bullish trend has not been able to overcome the current bearish developmentsBitcoin is still trading in the $90,000. Some market participants are still skeptical. cautious If selling pressure increases, the price could drop as low as $80,000. BTC was trading at $95,324, which is down 1% over the last 24 hour.
Charts by TradingView.com and X, with images provided by Unsplash.
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Source: www.newsbtc.com
