Cryptocurrency markets are continuously bustling, and Bitcoin‘s price is once again nearing the $42,000 mark. In a few hours, US inflation data will be released, leading to increased market volatility. These critical data, coming before tomorrow’s inflation data, have the power to determine the market’s direction.
US Inflation Data
The king cryptocurrency is currently finding buyers at $41,792 and the losses in the last 24 hours have fallen to 1.4%. In the following hours, we will see the release of the US inflation data. This data will reveal the status of the Fed’s battle. Last month’s extremely positive data had supported a major rally. Now, to prevent the sentiment from reversing, it’s crucial for inflation to come in low again.
In November, oil prices were hovering around $80, but this month they have fallen, and if inflation comes in slightly high due to energy prices, the optimism for December’s data may balance out the fear. On the other hand, since employment data came in exceptionally strong, lower inflation than the previous month could push Bitcoin’s price above $44,000 again.
Annual inflation was at 3.2% the previous month and is expected to be announced at 3.1% this month. A figure at this level or lower would fuel optimism. The monthly core inflation is expected to increase from the previous 0.2% to 0.3%, and here too, we are looking for a lower number.
BTC Price Predictions
Bitcoin’s price is holding on to 11% of its gains from December. The critical level highlighted by different analysts yesterday was the $42,000 region. If the price can maintain this threshold, it could reach new highs above $44,000. On the other hand, Poppe mentioned that if Bitcoin closes above $39,000 this month, it could embark on a journey to $50,000.
The daily chart indicates that the critical threshold seems to be the $40,300 region. BTC received a response from this area yesterday. On December 3rd, the same area had acted as resistance. Now, it is hoped that after the response from this level, the price will sustain closures above $41,500. If the support at $40,300 is lost, sales could continue down to the levels of $36,900 and $35,600.
