Today, US January CPI data was released. According to the data that came in above expectations, Bitcoin started to decline as it was understood that inflation was worse than expected in January.
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BREAKING! US Inflation Data Announced! Here’s Bitcoin’s (BTC) First Reaction!
At this point, the Bitcoin (BTC) price fell by about 3% in 15 minutes to $94,100 following the CPI pressure.
The decline in BTC was accompanied by altcoins, with Ethereum (ETH) and Solana (SOL) prices also dropping to $2,600 and $193, respectively.
Following the inflation data, markets began pricing in the next interest rate cut to be made in December rather than September.
Investors are pricing in 97.5% of the Fed holding interest rates steady at its next meeting in March, according to CME FedWatch.
Bitcoin at a Critical Point!
While Bitcoin was negatively affected by the above-expected inflation data, an analyst said that breaking the $92,000-$94,000 support in Bitcoin could cause a major selling wave.
Adam, a macro researcher at Greeks.Live, noted that investors are closing long positions amid weak price trends. This has kept market sentiment bearish, with the analyst saying the 92,000-94,000 area is a critical support area.
According to the analyst, if this support is broken, it could lead to a massive selling wave and the price could fall further.
However, the analyst said that there are also good things for Bitcoin. At this point, the analyst said that despite the low volume and high volatility, there are large buy orders totaling 900 BTC between the current levels and $98,000, which is a sign of a rapid recovery.
https://twitter.com/BTC__options/status/1889632794491384084
*This is not investment advice.
