Bitcoin Price Prediction – BTC Crashes Below $16,500, Can US Inflation Data Push it to $10,000
Under the $19,350 resistance level, Bitcoin price prediction remains bearish; however, $15,850 is acting as a major support and may underpin BTC. After the release of October's CPI figures, Bitcoin experienced a sudden 10% jump. The unexpectedly low CPI reading sent the price of risky assets like cryptocurrency soaring.
A gauge of core consumer price pressures fell from record highs in October, easing inflationary pressures in the United States and boosting hopes that the Federal Reserve may slow the pace of its rate hikes in November.
While the "headline" consumer price index saw its annual pace decrease to its lowest since January, traders focused on the "core" reading and its potential implications for monetary policy due to signals of reducing inflationary pressures.
The numbers for core CPI, which excludes food and energy, were announced on Thursday, and they showed a 0.3% increase over the previous month. That was significantly slower than the 0.6% rate seen in September and the 0.5% growth predicted by experts.
Core inflation is at 6.3% from this time last year, slowing from the four-decade high of 6.6% in the preceding month. Both the Federal Reserve and economists agree that core inflation measurements provide the most insight into price trends in the future.
The headline CPI, which includes food and energy prices, fell to 7.7% year over year in October from 8.2% in September. Lower than the 8 percent increase forecast by economists, that was the lowest level since January.
The index rose 0.4% from the previous month, which was lower than the 0.6% increase that was expected. Weaker-than-expected US inflation figures have driven a sell-off in the US dollar, driving an uptrend in the BTC/USD pair.
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