Bitcoin is currently trading just above $85,000, showing little reaction to the recently released, less-than-expected U.S. inflation figures.
Summary
- Bitcoin is around $85,000 with minimal response to the softer-than-expected U.S. inflation data, as $504M in liquidations have impacted the market over the last 24 hours.
- Notable analysts on X are providing their thoughts on Bitcoin’s current price challenges.
- Traders are preparing for potential volatility ahead of the Bank of Japan’s announcement, with Bitcoin facing significant resistance at $88K and support holding around $85.4K.
Trader insights
Crypto analysis expert Ali Martinez points out that Bitcoin remains within a tight range on shorter timeframes, hitting resistance just below $90,000 and finding support around $85,400. A breakout could lead to a bullish trend, while a breakdown might indicate further decline.
Daan Crypto Trades also shared an intriguing perspective.
Bitcoin is expected to experience a significant price move before the month concludes, referencing historical monthly trading patterns.
Currently, Bitcoin’s range between its monthly high and low is about 12%, which is notably smaller than average, as monthly candles typically reveal wider fluctuations more than 90% of the time. It is statistically unlikely, therefore, that both extremes were established at the beginning of the month.
This indicates that it is likely one of these levels will be broken. While the data does not suggest a clear direction, it implies increased volatility on the horizon, with Bitcoin positioned near the center of its monthly range, requiring at least a 5% shift to test either extreme.
Michael van de Poppe, another analyst, commented that Bitcoin’s recent movements reveal the market’s sensitivity to macroeconomic factors, even amidst positive economic indicators.
Despite upbeat U.S. inflation figures and a temporary rise, Bitcoin quickly fell back, emphasizing the importance of the $88,000 level as a crucial resistance point that must be surpassed to regain upward momentum.
The analyst highlighted the Bank of Japan’s policy decision as a significant catalyst this week, noting that while equities like the Nasdaq have rallied and gold remains steady, cryptocurrencies are lagging as traders prepare for a possible interest rate hike.
