Crypto currency market recently faced a downturn following the release of higher-than-expected inflation data, increasing concerns among investors about the future of the global economy. According to CNBC, the core personal consumption expenditures (PCE) price index, excluding food and energy, rose by 2.8% year-on-year in March.
Opportunity Zone in Bitcoin
This latest report is part of a series of negative inflation updates, leading to speculation that the Federal Reserve might keep interest rates steady. Consequently, over the weekend, the slowdown in BTC price transactions supports sideways movements for most major cryptocurrencies, indicating no major initiatives from either buyers or sellers. However, market participants perceive the current consolidation as an opportunity to stabilize before the expected rally following the crypto halving.
The leading cryptocurrency, Bitcoin, primarily stands out with its pioneering blockchain technology, which allows decentralized and secure financial transactions without the need for a central authority. Bitcoin witnessed significant selling pressure this week, with its price dropping from $67,000 to $63,352, marking a 5% decrease. The leading cryptocurrency has a market value of $1.25 trillion, with a 24-hour trading volume at $18 billion.
Resistance Level in OP
If the downward momentum continues, the BTC price could drop an additional 5.2% to reach the support trend line of the triangle pattern at $60,000. This technical formation has led to a consolidation trend echoing within two converging trend lines over the past two months. If the lower support holds, Bitcoin’s price could trigger a renewed rally targeting the overall resistance level of $71,200. Optimism (OP), a Layer 2 scaling solution for Ethereum, aims to increase the blockchain’s capacity and reduce transaction costs. This technology stands out by enabling faster and cheaper transactions while leveraging the security of the Ethereum mainnet.
Over the past seven weeks, the OP price has witnessed a steady correction under the influence of a declining trend line. The downward trend brought the altcoin price down 63% from $4.85 to $1.8. However, the altcoin price has rebounded to $2.64 amid post-halving consolidation. Optimism currently shows a market value of $2.7 billion, with its trading volume having risen to $427.2 billion since yesterday. The recent rise broke above the indicated trend line signal, marking the end of the previous correction trend. Experts believe a post-breakout rally could push the crypto price to $4.
