BTC price targets $27K as Bitcoin bulls shrug at PPI inflation surprise

nestorsauer8 15. September 2023 0

Bitcoin (BTC) headed larger into the Sep. 14 Wall Street open regardless of contemporary macro knowledge displaying resurgent United States inflation.

BTC/USD 1-hour chart. Source: TradingView

Bitcoin positive aspects whereas U.S. PPI beats forecast

Data from Cointelegraph Markets Pro and TradingView adopted BTC price motion as it made new September highs, topping out at $26,762.

Bitcoin constructed on energy seen after the previous daily close, ignoring the implications of the U.S. inflation rebound as confirmed by each the Consumer Price Index (CPI) and Producer Price Index (PPI) August prints.

The latter got here in at 1.6% year-on-year in opposition to market expectations of 1.3%.

Crypto nonetheless joined conventional markets in rejecting the concept that U.S. macro coverage may keep extra restrictive for longer with the intention to tame inflation.

According to CME Group’s FedWatch Tool, there was virtually no consensus over the Federal Reserve elevating rates of interest once more later within the month. On the opposite, odds of a fee hike pause stood at 97% at the time of writing.

Fed goal fee chances chart. Source: CME Group

The disconnect between the information and market sentiment was underlined by a call by the European Central Bank (ECB) to hike charges by 0.25% on the day.

“This is their 10th consecutive rate hike putting rates at 4.5%, their highest since 2001,” monetary commentary useful resource The Kobeissi Letter wrote in a part of a reaction on X (previously Twitter).

“The ECB also cut all their growth forecasts through 2025. The fight against inflation is far from over.”

Kobeissi added that though the ECB had signalled that the newest hike could possibly be the final within the present cycle, futures markets had been nonetheless 30% certain of continuation.

“Central banks around the world are bracing for a LONG pause with elevated rates,” it concluded.

BTC price predictions cross $27,000

Eyeing the state of play on Bitcoin, market members had been hopeful that one other leg up would take BTC/USD to $27,000.

Related: Bitcoin price can hit $46K by 2024 halving — Interview with Filbfilb

“Bitcoin still acting out the Power of Three setup — pushing into the local resistance,” standard dealer Jelle told X subscribers in a part of the day’s evaluation.

“Break above $26,400 and I got my eyes on $27,600 next.”

BTC/USD annotated chart. Source: Jelle/X

More conservative on the outlook for BTC price energy was dealer and analyst Rekt Capital, who eyed an ongoing repeat of a chart fractal from 2021 — Bitcoin’s newest all-time excessive.

“Bitcoin bounces from ~$26,000. And as long as $26k holds as support, Phase A-B of the fractal could be in play,” he wrote alongside explanatory charts.

“But we’ve seen this fractal occur in 2019 and 2021 as well. A relief rally followed by rejection could reveal a weakening support at $26k.”

BTC/USD annotated chart. Source: Rekt Capital/X

This article doesn’t comprise funding recommendation or suggestions. Every funding and buying and selling transfer includes threat, and readers ought to conduct their very own analysis when making a call.