Required containers
- Bitcoin trades around $81,000, maintaining bias but facing resistance at the 200-day EMA.
- Traders are waiting for the US Consumer Price Index (CPI) data, which could lead to volatility in BTC and risky assets.
The US CPI report could drive Bitcoin volatility
Bitcoin traders are waiting for the release of the US Consumer Price Index (CPI) for April, which is scheduled for Tuesday at 12:30 GMT.
The report is expected to show a sharp rise in inflation, led by rising oil prices amid the ongoing US-Iran conflict.
The monthly CPI is expected to rise by 0.6%, following March’s increase of 0.9%. The annual CPI reading is expected to rise to 3.7%, from 3.3% in March, marking the highest level since September 2023. Core CPI, excluding food and energy prices, is expected at 0.3% for the month and 2.7% for the year.
The data will create expectations of future interest rate cuts by the Federal Reserve (Fed), which could lead to volatility in Bitcoin and other risky assets.
In addition, low oil prices continue to lower prices, strengthening the possibility of a Fed rate hike, which could hinder Bitcoin’s growth.
Negative headlines about the US-Iran situation could also strengthen the US Dollar (USD) as a reserve currency, further reducing long-term risk.
Despite the natural uncertainty, demand for Bitcoin businesses and companies remains strong, providing support for its value.
Place Bitcoin ETFs recorded inflows of $27.25 million on Monday, according to CoinGlass databreaking two days out from the previous week.
Although the entries were low, they show a cautious but positive attitude from investors. If this trend continues, the price of Bitcoin could rise significantly.
On the corporate side, Strategy (MSTR), led by Michael Saylor, added 535 BTC to his wallet on Monday, bringing his total Bitcoin holdings to 818,869 BTC.
The company has been collecting Bitcoin in recent months, with a purchase price of about $75,540 – above the current market price, adding to the bullish sentiment.
Bitcoin technical outlook: Resistance at the 200-day EMA
Bitcoin is trading around $81,000 on Tuesday, maintaining a bullish bias as it is above the 50-day and 100-day Exponential Moving Averages (EMA) near $76,700.
The 50% Fibonacci retracement at $78,962 also provides strong support. However, Bitcoin is currently facing resistance at the 200-day EMA, which is near $82,130.
A break above this level would open the way to the next resistance area around $83,437 (61.8% Fibonacci retracement) and $84,410 (horizontal barrier).
The Relative Strength Index (RSI) on the 4-hour chart is at 55, and the Moving Average Convergence Divergence (MACD) remains positive, which means that although the bullishness is strong, there are no overbought items.
If the rally continues, long-term resistance is seen at the 200-day EMA around $82,130, followed by the 61.8% Fibonacci retracement at around $83,437 and a horizontal resistance near $84,410.
However, if the change continues, the sellers may meet support at the $80,000 level, ahead of the 50% retracement at $78,962, with the 100 and 50-day EMA near $76,647 and $76,248, the trend is above about $75,680.
