Bitcoin price lost 10% in the last two days with a bearish sentiment. Traders keep eye on U.S CPI data to asses the market mood
Bitcoin’s (BTC) price has been consolidating for the past few sessions after making a high of $24,186. It seems the bulls are looking for a breather after making an impressive move at the start of 2023. However, whales are on a buying spree and poised to buy the dip.
As of the writing time, BTC/USD reads at $21,841, up 0.23% for the day. As per Coinmarketcap, the 24-hour trading volume of the pioneer cryptocurrency dropped marginally by 8% to $20,625,703,825.
Investors await the release of Tuesday’s U.S. Consumer Inflation (CPI) data to take further directional clues on the Bitcoin price. The core CPI is expected to come at 5.5% as compared to 5.7%. On the other hand, a better-than-expected reading could dash hopes of a Fed pivot.
Further, the correlation between Bitcoin and Nasdaq rose to 0.74 from -0.12 in the past four-week, indicating that the mentioned data could affect both assets on a larger scale.
4-hour chart signs of reversal need confirmation
As can be seen on the above technical chart, the price is consolidating near $21,600 and attempting to breach the 21-day Exponential Moving Average (EMA). If the buying pressure is sustained the Bitcoin price would not hesitate to meet $22k again.
The Moving Average Convergence Divergence (MACD) holds below the central line with an increasing buying momentum, showing the underlying bullish sentiment.
On the contrary, any downside tick in the momentum oscillator and a spike in volatility could result in the continuation of the prevailing trend. On the lower side, the price could drop toward $21,300.
