Even Bitcoin rebounds on CPI surprise
The much softer-than-expected US CPI data has lifted everything, with the Dow rising by 1000, German DAX hitting a 5-month high and GBP/USD surging by 300 pips no less.
It has even helped to underpin cryptocurrencies after what has been a very painful few days in BTC's history.
Bitcoin has risen back above 17K and was trying to get back above the June low and short-term resistance (around 17.5K) which it broke the day before. If it can manage to recapture this area decisively and hold above it, then this will provide us with the first sign that BTC might have bottomed. However, even if it does that, we will eventually need to see a higher high for confirmation. The most recent high is now at just shy of 21.5K.
On the other hand, if BTC fails to hold above the broken June low then this will disappoint the bulls and as such, the bearish trend will remain in place.
Let's wait and see what the market will decide and then trade accordingly.
By Fawad Razaqzada
It has even helped to underpin cryptocurrencies after what has been a very painful few days in BTC's history.
Bitcoin has risen back above 17K and was trying to get back above the June low and short-term resistance (around 17.5K) which it broke the day before. If it can manage to recapture this area decisively and hold above it, then this will provide us with the first sign that BTC might have bottomed. However, even if it does that, we will eventually need to see a higher high for confirmation. The most recent high is now at just shy of 21.5K.
On the other hand, if BTC fails to hold above the broken June low then this will disappoint the bulls and as such, the bearish trend will remain in place.
Let's wait and see what the market will decide and then trade accordingly.
By Fawad Razaqzada
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