Bitcoin price could drop to $31,500 ?
Updated
Hello dear friends!
BTCUSDT is experiencing significant growth, with a nearly 25% increase in just 9 days. However, this rapid development has also brought about some challenges. Let's explore more about it with Karina!
The price of bitcoin may witness some declines as the US Bureau of Economic Analysis (BEA) is expected to release the Core Personal Consumption Expenditures (PCE) data today. This data is a key measure of inflation by the Federal Reserve and is expected to rise during this period.
The US Core PCE is projected to increase:
PCE in September is expected to rise by 0.3% monthly compared to the previous release of 0.1%.
If the PCE data is in line with the forecast, it could have a significant impact on the cryptocurrency market. The reason behind this is that higher inflation (PCE) may lead traders to believe that the current interest rate environment will stay high for longer.
As a result, high interest rates make investors reluctant to allocate funds to riskier assets in order to minimize potential losses. Because Bitcoin and other cryptocurrencies are considered riskier assets, investors may withdraw from the cryptocurrency market, unlike precious metals like Gold.
On the 12-hour analysis chart:
The price is currently on a strong upward trend, and the EMA 34 signal is also supportive of that. However, after surging to the $34,000 level, BTCUSDT has become hesitant in continuing its price increase and is now trading calmly around this area.
Furthermore, the price has moved too far away from the operating zone of the two EMA lines, and it is completely valid for this currency to retest these EMA lines. The expected decline is likely to return to the support level at $31,500, and if this level cannot hold, the psychological level of $30,000 will be the next landing point.
However, if the core PCE data from the United States is lower than expected, Bitcoin may have an opportunity to continue rising. Checking the $33,901 level as a support level will help BTC strengthen its efforts to reclaim $35,000. This will invalidate the bearish argument and further support the value of the cryptocurrency.
Thank you for your interest. Please leave a like and a follow if you enjoy this analysis!
BTCUSDT is experiencing significant growth, with a nearly 25% increase in just 9 days. However, this rapid development has also brought about some challenges. Let's explore more about it with Karina!
The price of bitcoin may witness some declines as the US Bureau of Economic Analysis (BEA) is expected to release the Core Personal Consumption Expenditures (PCE) data today. This data is a key measure of inflation by the Federal Reserve and is expected to rise during this period.
The US Core PCE is projected to increase:
PCE in September is expected to rise by 0.3% monthly compared to the previous release of 0.1%.
If the PCE data is in line with the forecast, it could have a significant impact on the cryptocurrency market. The reason behind this is that higher inflation (PCE) may lead traders to believe that the current interest rate environment will stay high for longer.
As a result, high interest rates make investors reluctant to allocate funds to riskier assets in order to minimize potential losses. Because Bitcoin and other cryptocurrencies are considered riskier assets, investors may withdraw from the cryptocurrency market, unlike precious metals like Gold.
On the 12-hour analysis chart:
The price is currently on a strong upward trend, and the EMA 34 signal is also supportive of that. However, after surging to the $34,000 level, BTCUSDT has become hesitant in continuing its price increase and is now trading calmly around this area.
Furthermore, the price has moved too far away from the operating zone of the two EMA lines, and it is completely valid for this currency to retest these EMA lines. The expected decline is likely to return to the support level at $31,500, and if this level cannot hold, the psychological level of $30,000 will be the next landing point.
However, if the core PCE data from the United States is lower than expected, Bitcoin may have an opportunity to continue rising. Checking the $33,901 level as a support level will help BTC strengthen its efforts to reclaim $35,000. This will invalidate the bearish argument and further support the value of the cryptocurrency.
Thank you for your interest. Please leave a like and a follow if you enjoy this analysis!
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