- Bitcoin climbed above the $28,000 level and Ethereum inched closer to $1,900 in response to US Consumer Price Index data release.
- The US Bureau of Labor Statistics reported that inflation declined to 4.9% in April, against the market expectations of 5%.
- Technical expert behind tedtalksmacro has set a bullish target of $29,000 for BTC price.
Bitcoin price eyes the $29,000 target as US Consumer Price Index (CPI) came in at 4.9%, below market participant’s expectations of 5%. The largest asset by market capitalization rallied in response to the data release by the US Bureau of Labor Statistics (BLS).
Also read: Breaking: US CPI inflation data declines to 4.9% in April vs. 5% expected
Bitcoin price climbs above $28,000 with this macro catalyst
Bitcoin was trading sideways below the $28,000 level for nearly a week, in the absence of a catalyst. The US CPI release fueled Bitcoin’s breakout past $28,000, the asset is now climbing closer to resistance at $29,000.
The US CPI is considered a well-known indicator of inflation and change in prices paid by urban consumers over time. The CPI’s decline of 4.9% on a yearly basis in April 2023 was below market expectations of 5%, while CPI and Core CPI increased by 0.4%, matching the market analysts’ estimates.
BTC/USD 15-minute price chart
As seen in the price chart above, Bitcoin is currently in an uptrend and the asset hit a peak of $28,327 in response to the US CPI release for April 2023. BTC price experienced a pullback, however it has sustained above the $28,000 level, making it key support for Bitcoin.
With a US CPI release of 4.9%, technical experts at Tedtalksmacro have set a bullish target of $29,000 for Bitcoin.
CPI gameplan for #Bitcoin
— tedtalksmacro (@tedtalksmacro) May 10, 2023
Above 5.5% --> $25,000 (4% probability)
5.3% to 5.5%--> $26,500 (25% probability)
5.0% to 5.2% --> $28,500 (50% probability)
4.7% to 4.9% --> $29,000 (20% probability)
4.5% or lower --> $30,000+ (1% probability)
*Probabilities according to JPMorgan
In the case of Ethereum, the altcoin wiped out its losses since May 7, climbing past the $1,880 level in a bullish knee-jerk reaction by ETH traders.
ETH/USD 15-minute price chart
Ethereum price climbed past $1,887, erasing losses since Monday, followed by a moderate pullback to support at $1,876. As long as Ethereum price sustains above the $1,850 level, the upward trend is intact. A decisive close below the trendline could invalidate the bullish thesis for Ethereum.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Celebrity meme coins controversy continues amid Pump.fun revenue dominance
Pump.fun outperformed the Ethereum blockchain on Tuesday after raking in $1.99 million. Following this achievement, a meme coin based on actress Sydney Sweeney was the subject of controversy after its developers dumped their bags on investors.
PEPE's on-chain metrics indicate potential rally after weeks of silence
PEPE has struggled to see any significant price move after reaching an all-time high in May. Increased adoption rate and low MVRV ratio indicate a bullish run may be on the horizon. A single PEPE outflow from Binance worth $14.7 million gives credence to signs of bullish expectation.
Ethereum has failed to overcome key resistance despite bullish sentiment surrounding ETH ETF
Ethereum (ETH) is down more than 1.4% on Tuesday following another ETH sale from the Ethereum Foundation. Meanwhile, crypto exchange Gemini's recent report reveals that ETH ETF could see about $5 billion in net inflows within six months of launch.
Crypto community blasts Polkadot following report of treasury spending
Polkadot reports $87 million of treasury spending during H1. Crypto community members expressed harsh feelings toward the DOT team's high spending. DOT is up more than 2% in the past 24 hours but risks correction following the report.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.