Bitcoin Breakout Halts as US Inflation Data Looms - Await CPI Release

Bitcoin Breakout Halts as US Inflation Data Looms

Bitcoin(BTC) fell 3% in the past 24 hours, negating a bullish breakout, ahead of the release of US inflation data that could determine when the Federal Reserve (Fed) will begin cutting interest rates .

The leading cryptocurrency by market value fell back into a triangular consolidation pattern identified by trend lines connecting the highs of March 15 and 27 and the lows of March 20 and April 3. The symmetrical triangle consolidation ended with a bullish breakout earlier this week, opening the doors for a rally to $80,000.

Failed breakouts often result in short-term traders closing or reversing bullish bets in anticipation of a steeper price decline. Still, Markus Thielen, founder of 10x Research, warns investors against reading too much into Bitcoin's bullish failure.

“Bitcoin's failed breakout probably represents jitters ahead of the US CPI release. I wouldn't rule it out just yet,” Thielen told CoinDesk.

Thielen added that Wall Street's technology index Nasdaq rose on Tuesday, offering positive signals for bitcoin and other risk assets. In other words, bitcoin's decline could be short-lived. The cryptocurrency closely follows the trends of the Nasdaq and the Nasdaq-S&P 500 relationship.

The Bureau of Labor Statistics will release March 2024 CPI data on Wednesday at 08:30 ET (12:30 UTC).

The consensus is that the consumer price index, a measure of the cost of living, has risen 3.5% since March 2023, accelerating from February's 3.2% annual inflation rate, according to economists surveyed by the Wall Street Journal. The monthly pace is expected to have decreased to 0.3% from the 0 rate.4% from February.

热点：Bitcoin AS CPI