Bitcoin price awaits CPI announcement to reestablish directional bias

Bitcoin price reveals exhaustion signs after a 20% ascent in less than five days.
Investors can expect BTC to spike up to $23,164 before triggering a sweep of $21,525 or lower levels.
A daily candlestick close above $25,000 will invalidate the bearish thesis.

Bitcoin price shows signs of volatility ahead of the Consumer Price Index (CPI) announcement scheduled to take place today at 12:30 GMT.

The consensus is that the CPI could land at 8.1%, which if true, will indicate a fall from the previous 8.5%. A sign that inflation is falling would be bullish news for traditional markets, but if the announcement shows higher-than-expected CPI, then there is a possibility of a steep sell-off across all risk-on markets.

Bitcoin price shows reversal signs

Bitcoin price rallied roughly 20% since September 7 and has tagged the $20,692 and $21,874 targets mentioned in previous articles.

Although a reversal here seems possible, Bitcoin price might extend to $23,164 to fill out the imbalance, aka Fair Value Gap (FVG) first. Hence, investors should be careful about getting trapped in their premature short positions.

The objective of the bears would be a sweep of Monday’s lows at $21,525, followed by a sweep of the previous weekly low at $18,497. That this bearish outlook aligns with the macro outlook raises the chances of a reversal happening.

BTC/USD 6-hour chart

While things are looking up for Bitcoin price, a flip of the $25,000 hurdle into a support level will invalidate the bearish thesis. This move would trigger sidelined buyers to step in and catalyze a run-up to $28,000.

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