“If you do not expect the unexpected you will not find it, for it is not to be reached by search or trail.” - Heraclitus
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BTC rallied significantly, as it looks like the $52k level above is being targeted. The price broke through the powerful resistance area located between the key resistance level $49k (previous monthly high from January), major round resistance level $50k and the resistance trendline of the daily up channel from November.
This is an area that you need to pay close attention to, because on the weekly chart, it has been significant resistance. At this point, we will try to figure out whether or not we can get above $52k, because if we can with the bullish momentum, that becomes more of a FOMO trade, even more so than what we’ve already seen.
The latest data on the Consumer Price Index (CPI) from the United States Bureau of Labor Statistics, released on Tuesday, revealed a notable increase surpassing expectations. Consumer price growth soared to 3.1 percent annually, exceeding analysts' forecasts of 2.9 percent. This unexpected surge has led to significant market movements, including a rise in US government bond yields and the US Dollar Index (DXY), as investors anticipate prolonged higher interest rates from the Federal Reserve.
The US 10-year yield surged by approximately 10 basis points, reaching around 4.3%, while the DXY climbed to over two-month highs above 104.75. The repercussions of the heightened US inflation data are reverberating across various asset classes, particularly impacting interest-rate-sensitive assets such as US equities, gold, and cryptocurrencies.
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