Bitcoin appears to have undergone a short-term bounce with the announcement of the US CPI rates being lowered to 8.5% YoY. The upswing mirrors the bounce carried out during the revelation of the fresh inflation rates, recently. However, the bearish cartel always looks out for such an opportunity to take profits on their longs to drag the price lower.
Will BTC price sustain a significant increase near or above $24,000? If yes, for how long ?
The star crypto has always reacted positively on every occasion when the US has released either the inflation or CPI rates. However, the trading volume is currently half of that of the day when the US inflation rates were let out. Therefore, the possibilities of ascending consolidation appear to be high unless the bears hold on to their horses.
Conversely, bitcoin is showing heavy buying signals on the larger time frame. The RSI on the 2-week time frame has displayed a strong bullish divergence and hence it is expected that the asset may ignite a firm further downside.
The RSI which began to drop after reaching the highs during the 2021 bull run has reached the lows recently, during the mid of June. However, the RSI is displaying a bullish divergence since the beginning of the present August.
On the other hand, the fresh CPI rates are still bad but enough to pump up the market which is happening at the moment. Following the rollout, around $14 million worth of BTC shorts were liquidated within minutes, causing a significant increase in price. However, if bitcoin price closes daily above $24,200, a significant upward move towards the bullish target can be expected.
