Analysts say Bitcoin’s range-bound trading at a key support level reflects a trend reversal
Bitcoin (BTC) and cryptocurrency holders are enjoying the fruits of their labor on Feb. 10 after Bitcoin price rallied shortly after the U.S. Bureau of Labor Statistics showed a blistering 7.5% Consumer Price Index (CPI) print. This shows that inflation continues to worsen as fiat currencies bleed out their purchasing power.
Data from Cointelegraph Markets Pro and TradingView shows that after trading below $44,000 during the early hours on Thursday, the price of Bitcoin spiked to an intraday high at $45,850 following the release of the CPI data and most major stock market indices plunged into the red.
Here’s a look at what several analysts are saying about how Thursday’s CPI print could affect the price action for BTC moving forward and what levels to keep an eye on as the world grapples with high inflation.
“We are in a new cycle now” according to Ran Neuner, host of CNBC’s Crypto Trader, who posted the following chart highlighting the February BTC breakout as part of a cyclical pattern that Bitcoin has been trading in over the past year.
As shown in the chart above, this is the second time in less than a year that BTC has reversed course to head higher following a steep downtrend.
Neuner said,
Further insight into this trend reversal following a 3-month correction was provided by technical analyst and pseudonymous Twitter user ‘CryptoBirb’, who posted the following chart detailing the range-bound trading for BTC over the past year stating “with a bit of luck, Bitcoin may see follow-through to the upside, even beyond $50,000.”
Should BTC manage to hold its momentum at these levels, “Bitcoin has near targets of $46,300 - $46,500.”
CryptoBirb said,
Related: Bitcoin rejects sell-off as 7.5% US inflation fails to keep BTC down
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