Bitcoin Touched Resistance After Us Cpi Release

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Bitcoin Touched Resistance After Us Cpi Release

Bitcoin Touched $42K After US CPI Release

Before the release of the November CPI report, Bitcoin's price was on the back foot as it even lost 5% of its value. However, the CPI report turned out to be a bullish catalyst for Bitcoin as the cryptocurrency has already crossed the $42K mark.

The inflation reading was 3.1%, which enabled Bitcoin to reverse its losses. As a result, Bitcoin (BTC) was seen trading near $42,069, while the rest of the altcoins are also positive.

The core CPI inflation was a little higher than the headline inflation and was reported near 4%. According to experts, the CPI report has allowed the BTC holders to take a fresh breather and build momentum for the next wave.

BTC, ETH, & BNB Remains Steady

Bitcoin (BTC) has retreated a little bit and is trading near $41, 949 which is a little lower than the $42K handle. Now that the $42K handle has been lost once again, it will now turn back into resistance.

Now, it appears that the Bitcoin traders will look at Wednesday's FOMC meeting. As a result, the cryptocurrency market will go through increased volatility, which means big price changes are expected in BTC, ETH, BNB, & other coins.

According to experts, the key levels to watch include the $40,500 and the $40,335, as they can serve as support. On the upside, the $42K and the $42.5K remain relevant as they are important resistance zones.

One crypto analyst added that the decline in the cryptocurrency market will be short-lived. He added that the market players will buy any dips in BTC as many big events are scheduled in the next few days.

A hawkish tone from the FOMC, along with a promise of interest rate hikes or talks about keeping the interest rate unchanged for a really long period of time, will send the BTC lower. Conversely, Bitcoin (BTC) will gain from talks of rate cuts in the next year.

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