TA- Bitcoin Bounced off Key Support After CPI Announcement
The price of Bitcoin (BTC) bounced off its key support against Dollars (USD) after the Consumer Price Index (CPI) announcement in the United States. The metric is used to measure inflation in U.S. dollar and hints at a potential slowdown.
Bitcoin price saw a pullback from $24,200 to $22,800 despite showing signs of relief rally but was faced with resistance to breakout ahead of CPI news sentiments. (Data feeds from Bitstamp)
Price Analysis Of BTC On The Weekly Chart
From the chart, the price of BTC saw a weekly low of around $19,100, which bounced from that area and rallied to a price of $24,300.
The price has built more momentum as it faces resistance at $24,300.
If the price of BTC on the weekly chart continues with this bullish structure, it could quickly revisit $28,000.
Weekly resistance for the price of BTC – $28,000.
Weekly support for the price of BTC – $19,100.
Price Analysis Of BTC On The Daily (1D) Chart
The price of BTC found strong support at around $20,600, with what seems to be an area of interest on the daily chart.
BTC bounced from its support, forming a rising wedge as it faces resistance to break above $24,200.
At the point of writing, the price of BTC is at $23,980, trying to break the resistance of $24,000 that corresponds to the 50 exponential moving averages (EMA).
If the price of BTC fails to break above the 50 EMA region, and at the same time breaks below the ascending wedge, $20,600 would be a good support to hold sell-offs and a possible price bounce.
With more buy bids, and the positive CPI announcement we could see the price of BTC breaking out above $24,300, and BTC price will trend higher.
The RSI for the price of BTC on the daily chart is above 50, indicating healthy buy bids for BTC.
The volume for BTC indicates low buy bids, this shows bulls would want to know the outcome of the CPI meeting.
Daily (1D) resistance for BTC price – $24,300.
Daily (1D) support for BTC price – $22,800, $20,600.
Price Analysis OF BTC On The Four-Hourly (4H) Chart
The price of BTC has shown a range in an ascending wedge on the 4H chart, as the price faces rejection at $24,000.
BTC’s price is $23,990, trading above the 50 but above the 200 EMA with prices of $23,200 and $22,700 on the 4H chart. These prices would be a support area for BTC on the 4H chart.
Four-Hourly (4H) resistance for BTC price – $24,300.
Four-Hourly (4H) support for BTC price – $23,200, $22,700.
With the positive CPI, the price of BTC would trend higher.
Featured image from NewsBTC, Charts from TradingView.com