Technical Analysis:
BITCOIN is trying to hold this level from yesterday and also gave a structure shoft to the upside on 1H time frame, which shows us that buyers ares till interested in BTC. We also have equal highs around 63500 so price can clear liquidity of this zone and the continue with trend or if price shifts structure on 1D time frame then we might again head to the upside in BTC.
Fundamentals:
For April, economists expect the CPI to show a year-on-year increase of 3.4%, a slight deceleration from March’s 3.5%. On a month-to-month basis, the increase is anticipated to slow to 0.3% compared to 0.4% previously.
The core CPI, which strips out the more volatile costs of food and energy, is also expected to reflect a similar downtrend. The forecast suggests a drop from 3.8% to 3.6% on a year-on-year basis, marking the lowest annual core inflation rate since April 2021. Similarly, the monthly increase in core CPI is expected to decelerate to 0.3% from the previous month’s 0.4%.
Goldman Sachs economists anticipate that the core CPI will continue to show disinflationary trends in the coming months, forecasting monthly core CPI inflation to hover between 0.25% and 0.30% before decreasing to about 0.2% by the end of 2024. The year-over-year core CPI is projected to stabilize at 3.5%, and core Personal Consumption Expenditures (PCE) inflation, another key indicator watched by the Federal Reserve, is expected at 2.7% by December 2024.
The CPI data typically plays a significant role in influencing market dynamics, more so than the Producer Price Index (PPI). However, the real implications for financial markets will likely emerge once analysts review both the CPI and PPI reports. Notably, today (at 8:30 am ET) is a rare occasion where US PPI data is released the day prior to CPI data.
The Bitcoin and crypto markets have shown notable sensitivity to inflation figures and the US Federal Reserve policy over the past months. Ted highlighted the importance of the upcoming inflation data, indicating that a slowdown in inflation could bolster risk assets like Bitcoin.
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