Bitcoin Price falls amidst US CPI data release, is Crypto Season in jeopardy?


  • Bitcoin price has fallen 12% in one day upon the release of the Consumer Price Index.
  • The bears have shown an uptick in volume amidst the decline.
  • The uptrend scenario could be invalidated if the bears tag the July 7 swing low at $18,510.

Bitcoin price falls sharply amidst the CPI release. An uptrend move could still occur for the reasons mentioned below.

Bitcoin price falls hard

Bitcoin price has witnessed a strong rejection near the upper $22,000 level. The bears have induced a 12% sell-off, wiping out nearly all of the gains made during September. The newfound bearish strength comes amidst the release of the US CPI data, which reported an uptick in consumer prices. 

According to the FXStreet team, the release is causing high-cap investors to hedge a portion of digital assets into US dollars as there may be an influx of demand during an inflated consumer market. 

Bitcoin price currently auctions at $20,030 as the peer-to-peer digital currency is falling penny-from-Eiffel style on the lower time frame. An influx of volume is pouring into the market as retail bears have hopes to breach the September 7 liquidity level at $18,510. 

tm/btc/9/13/22

BTC USDT

The Relative Strength Index is still within the supportive territory, which merits the idea that the downtrend may not be as strong as meets the eye. Additionally, the 8- and 21-day simple moving averages hover just above the current BTC price. They could provide a bullish sweep-and-coil effect if the bears cannot continue the declining rally. 

Based on the Elliott Wave Theory, the Bitcoin price can still rally higher as the bears have not yet closed below the triangle apex at $19,853. If previous outlooks are correct, the current decline could be the last fakeout before a rally towards $30,000 occurs. 

Invalidation of the bullish thesis remains a breach of the September 7 swing low at $18,510. Early evidence suggests uptrend failure will be a closing candle below the triangle apex at $19,657.

In the following video, our analysts deep dive into the price action of Bitcoin, analyzing key levels of interest in the market. -FXStreet Team

 


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


Recommended Content

Editors’ Picks

Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch

Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch

Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.

More Bitcoin News
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers

Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers

Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins. 

More Bitcoin News
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction

Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction

Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.

More Solana News
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs

SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs

The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.

More Cryptocurrencies News
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy

Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy

Bitcoin (BTC) price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot Exchange Traded Funds (ETFs) in January and the reduced supply following the fourth halving event in April.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP