“In the short run, the market is a voting machine. In the long run, it is a weighing machine.” - Benjamin Graham
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BTC's price briefly dropped after the CPI data release. Despite this correction, expectations are for it to be short-lived, potentially allowing for a more significant breakout past $40k.
Support at $36k and a positive MACD indicator on the weekly timeframe signal potential for a larger breakout past $40k, displaying a vivid buy signal. However, breaking below $36k may lead to a more prominent sell-off with support levels at $35k and $33k in focus.
The Consumer Price Index (CPI) statistics for the United States fell slightly short of market expectations, indicating retail inflation. Stocks immediately offered a warm reaction at the Wall Street open, with the S&P 500 up 1.5% on the day. At the same time, BTC reacted only modestly, revisiting an intraday low before rising toward $37k while still rangebound.
Following the release of weaker U.S. inflation figures, BTC fell 3%, compared to a 2% increase in a global market index. This change shows increasing risk appetite across asset classes, fueled by predictions that the Federal Reserve would switch from rate hikes to rate cuts in the next year.
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