- U.S. inflation in August exceeded expectations at 3.7%, the second consecutive month of rising inflation.
- Bitcoin (BTC) bounced back from the $25,000 to $26,500 range.
Inflation in the United States surged to an annual rate of 3.7% in August, surpassing the consensus expectation of 3.6%, according to the latest Consumer Price Index (CPI) statistics released by the U.S. Bureau of Labor Statistics. This marks the second consecutive month of rising inflation, with the CPI rising from 3.2% in July and 3% in June, albeit still at the slowest rate of increase since March 2021.
In the world of cryptocurrencies, FTX, a bankrupt cryptocurrency exchange, has received approval from the bankruptcy court to liquidate its crypto assets valued at a staggering $3.4 billion, indicating the ongoing challenges and volatility within the crypto industry.
Amidst these economic challenges, the largest cryptocurrency, Bitcoin (BTC), has shown some positive momentum. Earlier this week, BTC found support at $25,000, and at the time of writing, it is trading at $26,284. In the early hours of the day, Bitcoin even touched levels of $26,500.
Bitcoin (BTC) Price on Surge
Over the past 24 hours, Bitcoin’s price has surged by more than 1.5%, and it has seen a 2.10% increase over the course of the week. These substantial gains have captured the attention of investors and traders alike.
Analyzing the daily price chart, Bitcoin is currently positioned above several crucial support levels on the one-hour chart. Notably, it has breached a descending trendline. And the 50-day moving average has crossed above the 200-day moving average, a bullish sign in technical analysis. As of now, the BTC price continues to trade above these moving averages.
Bitcoin (BTC) Price Chart (Source: TradingView)
The Relative Strength Index (RSI) for Bitcoin stands at 56, indicating a neutral zone. This suggests that there is room for further price movement.
Looking ahead, if Bitcoin manages to breach the key support level of $26,565 and maintains stability above this threshold, it could pave the way for an uptrend towards $28,000 and even $30,000.
However, the possibility of bearish movements cannot be ruled out entirely. If the bears gain control, Bitcoin may experience a drop to $25,843 or potentially even lower, down to $25,200.
