{"id":25010,"date":"2023-11-14T15:34:47","date_gmt":"2023-11-14T15:34:47","guid":{"rendered":"https:\/\/nftandcrypto-news.com\/crypto\/bitcoin-bounces-at-36-2k-lows-as-cpi-inflation-slows-beyond-forecasts\/"},"modified":"2023-11-14T15:34:48","modified_gmt":"2023-11-14T15:34:48","slug":"bitcoin-bounces-at-36-2k-lows-as-cpi-inflation-slows-beyond-forecasts","status":"publish","type":"post","link":"https:\/\/nftandcrypto-news.com\/crypto\/bitcoin-bounces-at-36-2k-lows-as-cpi-inflation-slows-beyond-forecasts\/","title":{"rendered":"Bitcoin bounces at $36.2K lows as CPI inflation slows beyond forecasts"},"content":{"rendered":"
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Bitcoin (BTC) targeted $37,000 at the Nov. 14 Wall Street open as the latest United States inflation data undercut expectations.<\/p>\n

BTC\/USD 1-hour chart. Source: TradingView<\/em><\/figcaption><\/figure>\n

CPI offers Bitcoin, stocks a pleasant surprise<\/h2>\n

Data from Cointelegraph Markets Pro and TradingView showed BTC price strength returning as the Consumer Price Index (CPI) reflected slowing inflation in October.<\/p>\n

CPI came in 0.1% below market forecasts both year-on-year and month-on-month. The annual change was 3.2%, versus 4.0% for core CPI.<\/p>\n

“The all items index rose 3.2 percent for the 12 months ending October, a smaller increase than the 3.7-percent increase for the 12 months ending September,” an official press release from the U.S. Bureau of Labor Statistics confirmed.<\/p>\n

“The all items less food and energy index rose 4.0 percent over the last 12 months, its smallest 12-month change since the period ending in September 2021.”<\/p><\/blockquote>\n

U.S. CPI data. Source: U.S. Bureau of Labor Statistics<\/em><\/figcaption><\/figure>\n

Versus the month prior, where CPI was just one inflation metric, which overshot versus market consensus, the situation was palpably different. Stocks immediately offered a warm reaction at the Wall Street open, with the S&P 500 up 1.5% on the day.<\/p>\n

\u201cThis is the 31st consecutive month with inflation above 3%. But, inflation seems to be back on the DECLINE,\u201d financial commentary resource The Kobeissi Letter wrote<\/a> in part of a reaction.<\/p>\n

Kobeissi, traditionally skeptical of Fed policy in the current inflationary environment, nonetheless called the print a \u201cgood\u201d result.<\/p>\n

In line with other recent CPI releases, meanwhile, Bitcoin reacted only modestly, revisiting an intraday low before rising toward $37,000 while still rangebound.<\/p>\n

Analyzing market composition, however, on-chain monitoring resource Material Indicators noted that liquidity was overall thin \u2014 a key ingredient for aiding volatility.<\/p>\n

With whales quiet on exchanges, it added, retail investors were increasing BTC exposure.<\/p>\n

\u201cIt’s no coincidence that the 2 smallest order classes are buying,\u201d it commented alongside a print of BTC\/USDT order book liquidity on largest global exchange Binance. <\/p>\n

\u201cUpside liquidity around the active trading zone is so thin, whales can’t make large orders without major slippage. Watching the smaller order classes on the FireCharts CVD bid BTC up as support strengthens above $36k.\u201d<\/p><\/blockquote>\n

BTC\/USDT order book data from Binance. Source: Material Indicators\/X<\/em><\/figcaption><\/figure>\n

Analyst: Accept BTC price retracements<\/h2>\n

Down around 4% from the 18-month highs seen earlier in the month, BTC price action still impressed market participants, who argued that comedowns within the broader uptrend were not only standard, but appropriate.<\/p>\n

Related:\u00a0Bitcoin institutional inflows top $1B in 2023 amid BTC supply squeeze<\/em><\/strong><\/p>\n

\u201cBitcoin already down 4.5% from the highs; bull market corrections are normal and healthy,\u201d James Van Straten, research and data analyst at crypto insights firm CryptoSlate, told<\/a> X subscribers on the day. <\/p>\n

\u201cCould see up to 20% drawdowns, from profit-taking or liquidations. This is a normal occurrence and has been seen in previous cycles.\u201d<\/p><\/blockquote>\n

Van Straten precised CryptoSlate analysis from Nov. 13 which suggested that deeper BTC price corrections could still come, given BTC\/USD was up 120% year-to-date.<\/p>\n

\u201cIt is important to note that market corrections are a normal part of any financial cycle, contributing to the overall health of the market,\u201d he stressed.<\/p>\n

In an interview with Cointelegraph, Filbfilb, co-founder of trading suite DecenTrader, likewise predicted that Bitcoin could see a significant drawdown prior to the April 2024 block subsidy halving event.<\/p>\n

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.\n<\/p>\n<\/div>\n