Bitcoin nears $112,000 ahead of key US inflation data
Bitcoin surpassed $111,000 on Binance, up 7.5% from its October 17 low. This rally comes at a key moment, as the market anticipates important macroeconomic data and analyzes technical signals for further movement.
BTC/USD 1-day chart. Source: Binance
Bitcoin's Critical Zone
Analysts agree that Bitcoin has reached a decisive moment. Crypto trader Michaël van de Poppe calls the $112,000 level critical for further growth. This level represents a breakout of the 20-day moving average and horizontal resistance zone. He predicts that a consolidation above this level will pave the way for a new all-time high as early as November.
BTC/USD 1-Day Chart. Analysis by Michael van de Poppe
Technical indicators are also sending encouraging signals. Trader BitBull notes that the stochastic RSI is indicating a bottom—the same pattern was observed before Bitcoin's rise to a new all-time high in the first week of October. A repeat of this pattern could indicate the market is poised for a new upside momentum.
BTC/USD 1-Day Chart. Analysis: BitBull
The bullish sentiment is also spreading to alternative cryptocurrencies. Analyst Moustache expresses an extremely optimistic view of altcoins, pointing to two key factors: the six-year trend line continues to hold, and the 2021 all-time high now acts as support. This technical picture paves the way for altcoins to rally after Bitcoin's dominance.
1-Month Altcoin Market Cap Chart. Analysis by Moustache
Macroeconomic factors
The cryptocurrency movement is taking place against the backdrop of a tense geopolitical situation. President Trump unexpectedly announced the end of all trade negotiations with Canada, accusing the country of using fake ads featuring Ronald Reagan, according to the analytical resource The Kobeissi Letter. This decision was made late Thursday evening, adding to market uncertainty.
Despite the political upheaval, traditional markets are showing resilience. S&P 500 futures continue to rise and are just 15 points away from their all-time high, indicating continued risk appetite among investors.
The key event of the day will be the release of consumer price index (CPI) data at 3:30 PM Moscow time. The consensus forecast among economists is for the figure to rise to 3.1%, up from the previous 2.9%. Analyst Crypto Candy warns of possible increased volatility following the release of this data.
Investors are closely monitoring inflation rates, as they directly influence central bank interest rate decisions. Any deviation from the expected 3.1% could dramatically alter the trajectory of both traditional assets and digital currencies.
Source: cryptonews.net
