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20 May 2024
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Bitcoin Price: Will Softer CPI Send BTC To $70,000 In May?

The Bureau of Labour Statistics has released the Consumer Price Index (CPI) report this week, indicating that inflation is easing again in the US. According to the data, inflation grew slower in April, rising by 0.3% compared to 0.4% in the previous month, beating economists’ expectations of a 0.4% month-over-month growth. Bitcoin price, which hovered between $60,000 support and resistance at $64,000 for almost two weeks, gained growth against sellers, topping the $65,000 level.

Bitcoin Price Analysis As Inflation Eases

After the constrained movement in the narrow range between $60,000 and $64,000, BTC price is attempting to make a daily close above $65,000. The lack of direction was attributed to investor withdrawal citing growing uncertainties hinges on regulations and geopolitical tensions.

However, with inflation breaking the rising streak in April, risk assets are showing potential to wake up and recoup the losses incurred since April.

According to the CPI report, yearly inflation went up by 3.4% matching expectations of 3.4% but fell below 3.5% — reported in March.

Excluding the volatile prices of food and energy, the Core CPI climbed by 0.3% matching market watchers’ expectations of 3.6%. This metric shot up to 0.4% in March. Furthermore, considering the year-over-year basis, the Core CPI dropped to 3.6% compared to 3.8% in the previous month.

Bitcoin ETFs’ volume leaning more on the negative flows in the past weeks, appears to be changing the momentum as inflation eases in the World’s biggest economy.

According to SoSoValue data, ETFs recorded over $100 million in daily total net inflow, contributing to $11.84 of the cumulative total net inflow volume. Although outflows from Grayscale have eased in the last few weeks, GBTC still posted -$51 million of daily net inflow.

The best-performing ETFs on May 14 were Ark Invest with $133 million, followed by Fidelity with $8 million while Invesco closed the top three with $6 million.

Bitcoin ETFs stats | SoSoValue
Bitcoin ETFs stats | SoSoValue

Can Bitcoin Climb To $70,000 In March?

Bitcoin is back on the bullish frontlines, as buyers battle for the reins aiming for $70,000 before June. The coin now holds above all three short-term bull market indicators, including the 20-day Exponential Moving Average (EMA), the 50-day EMA, and the 100-day EMA (the blue, red, and purple lines on the chart).

Bitcoin price chart | Tradingview
Bitcoin price chart | Tradingview

BTC’s upswing is backed by the Relative Strength Index (RSI) as it enters the overbought region at 72. If this indicator sustains the uptrend, traders can expect Bitcoin to close the gap to $70,000 within the next two weeks.

The next few sessions will be crucial for Bitcoin price. With support above the red band or $64,000, bulls will have ample time to strategize the move toward $70,000.

However, sliding below the same level could hand sellers ammunition to push prices lower toward $60,000 again. Above all, Bitcoin price prediction reveals the coin is expected to peak above $100,000, marking the 2024 post-halving bull run.

The post Bitcoin Price: Will Softer CPI Send BTC To $70,000 In May? appeared first on CoinGape.

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