It was an uneventful end to last week, Bitcoin braces for CPI impact.
Bitcoin has continued to be stuck in a range nearing the $30,000 psychological mark. The market leader looks poised for a boom once the CPI data is released.
But analyst have noted that BTC may just be repeating its historical bullish price cycle.
Bitcoin remains gloomy but breakout is near
Bitcoin closed out last week at $29,023, losing 0.78% of its value over the last seven days. After a 0.17% fall on Sunday, BTC seemed to reflect the mood of the general crypto market which has been in decline over the last few weeks.
At press time, the market leader was trading $29,015. According to data from TradingView, it has accumulated a loss around 5.8% in the last 30 days.
Global economic unrest has made investors much more calculative. The impact of the release of the US Consumer Price Index (CPI) may affect the price of Bitcoin and altcoins.
The crypto market is sensitive to economic turmoil. When the CPI is released to the public, the effect of inflation on food and energy prices will shape the crypto market. Any increases in the price of necessary commodities leaves investors on shaky grounds, and less disposable income to invest.
Though rising CPI spells doom for the crypto market, it may also favour the market as crypto serves as an hedge against inflation.
In a recent post on X, market analyst Matthew Dixon expressed his worries and alluded to a possible chain reaction should inflation increase.
Read more: Bitcoin extends bearish trend over news of possible DOJ charges against Binance
Larger performance points to incoming bullish cycle
Despite the gloomy details, the benchmark coin’s larger performance points to an incoming bullish run.
According to Market analyst Ali Martinez, based on data from Glassnode, Bitcoin current’s price trajectory after reaching its all-time high in November 2021 is the same as its price movement between 2013 and 2017.
If this analysis is accurate and Bitcoin’s price cycle mirrors that of 2013–2017, then August 2023 and September 2023 are likely to see minimal change in the price of Bitcoin, with some minor increases along the way.
The Glassnode data points to a possible BTC price surge in October 2023, continuing its upward trend the entire month. After that, a significant re-correction is anticipated, with support being reached in the first week of November 2023.
Following this data, Bitcoin might possibly see a big price decline in the last month of 2023 but end the year in a strong consolidation zone.
If Bitcoin is actually repeating the 2013–2017 price cycle, when the king coin famously gained by more than 1600%, the BTC market could potentially be prepared for enormous profits in 2024 and 2025 after 2023.
However, a number of events, like the ongoing SEC proceedings against Coinbase and Binance and SEC rulings on the pending ETF applications, will change the course of the market. Investor mood would also be affected by the SEC’s appeal of the Ripple Court decision in SEC v. Ripple.
Disclaimer: CryptoPlug does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.
