The January CPI figures are due out later in the day on Wednesday. CPI is forecast to be slightly down, while Core CPI is forecast to come in slightly up. Bitcoin will normally react with high volatility going into the announcement, and also afterwards. Market holds its breath The US Bureau of Labor Statistics will release the CPI figures for January later on Wednesday. The market will perhaps be holding its breath, hoping that the figures will not be higher than those that are forecast. CPI (Consumer Price Index) is forecast to drop from 0.4% to 0.3%, while Core CPI is expected to rise slightly from 0.2% to 0.3%. If these figures do come in as forecast, the market will not be shocked, and the Fed will probably continue to say that it will not be in a hurry to make rate cuts. While this is not the best economic environment for Bitcoin, It is likely that rates will eventually be cut, given that US President Donald Trump wants them to come down in order to boost the economy. Bounce coming - but possibly lower first Source: TradingView The $BTC price continues to traverse within a wedge on top of another wedge. Having been rejected from the top of its current descending wedge, the price is floating down towards the ascending trendline (bold line). If the price does get down to the ascending trendline, it will be likely to bounce from there. Also, before it comes to this, the bottom of the sideways range, that Bitcoin has been following for around 3 months, is at $92,000. A bounce is probably coming, but it just remains to be seen how strong it will be. The clear macro picture for $BTC Source: TradingView When looking at technical analysis for the price of Bitcoin it is probably best to keep things as simple as possible. Getting into the weeds of all the various complexities can sometimes just throw confusion on where the price might go. The weekly chart above gives a picture that is far enough zoomed out to really see how this current bull market has developed, and where the next move might take the $BTC price. It can be seen that the Stochastic RSI has bottomed only a handful of times. Each time, the resulting bounce has taken the price up a huge amount. The indicator lines are coming down to the bottom once again. It could take two, three, or more weeks for those lines to rise again with the blue on top of the red. When they do, and if they continue upward, the resulting upward price momentum can lift the $BTC price much further. It’s just a matter of time. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
