Today we receive important economic data from the United States for the first time in weeks. New inflation figures are on the menu and this has already caused violent movements in Bitcoin (BTC) this year. But there seems to be little fear at the moment, because a promising increase can be seen in the graphs.
BTC surges past $111,000
The question is whether Bitcoin can actually start the weekend in the green again. In the past two weeks, Friday produced a sizeable red candle both times.
Now the cards seem a bit better shuffled. Late Wednesday evening, Bitcoin found support at the important level of $107,000 and has since made significant gains.
Yesterday in the morning the price already passed $ 110,000. This was followed by a small dip before it quickly shot back to a peak of $111,250 later in the day. In the evening it was announced that American President Donald Trump will meet his Chinese counterpart Xi Jinping next Thursday. That gave the final push.
But then the price dropped again quite quickly. Around midnight, the digital currency was again worth less than 110,000 dollars, but this decline has now been completely erased.
The graph below clearly shows how the price has now reached an important resistance level. If minced meat is made of $111,000, the next stops will be between $114,500 and $116,000 and then between $117,000 and $118,000.
Countdown to 2:30 PM
The consumer price index for the month of September will be published at 2:30 PM (Dutch time). It is the first time this month that official economic figures have been released, because the government is still closed. In the table below you will find the expectations and previous figures:
| CPI | Expectation | Previous |
|---|---|---|
| CPI annually | 3.1 percent | 2.9 percent |
| CPI monthly | 0.4 percent | 0.4 percent |
| Core CPI annually | 3.1 percent | 3.1 percent |
| Core CPI monthly | 0.3 percent | 0.3 percent |
Low numbers would be a boost for the Bitcoin price. Less worries about inflation give the central bank more room to stimulate the economy. Although there is a good chance that we will get two more interest rate cuts this year (which is good for Bitcoin and crypto), it would still pump some extra optimism into the market.
Source: https://newsbit.nl/crypto-wekker-bitcoin-stijgt-in-aanloop-naar-cruciale-inflatiecijfers/
