In a surprising move, the US Department of Labor Statistics released the CPI data for August 2024, which suggests the inflation rate has slowed for the fifth consecutive month. The fresh rates have been forecasted to be 2.6% from 2.9% in July, the lowest since February 2021. Besides, US core consumer prices slightly surged by 0.3%, marginally higher than the expected 0.2% compared to a 0.2% increase in July.
The state of the US is about to cast its vote to elect the new president and the ongoing rate cuts are expected to have a major impact on the traditional markets as well as the crypto markets. While the change does not seem like much, in a market where key metrics are constantly revised, even small improvements do matter. With this, the BTC price has been resting very well with a bounce off the weekly support level of around $55,900 and trying to push towards the upper boundary.
Bitcoin price is actively forming the top wick of this week’s candle, currently touching the upper boundary of $58,400 but still far from the Bollinger Band MA. However, in the daily chart, the price is testing both weekly resistance levels and the BB MA. Besides, the price is trying to rise above the average bands of the channel and the MACD displays a bullish crossover, indicating the start of a fresh bullish spell. Hence, the Bitcoin price is believed to maintain a consolidated upswing to reach the interim resistance close to $60,000, which may pave the way to reach the upper bands of Bollinger at $64,000.
Besides, no divergences are witnessed across the altcoins except for a few. If the FED continues to deliver positive, it may further trigger a five-day pump, lowering the selling pressure. Secondly, the current trade setup suggests this could be a temporary rally before the real turmoil begins. A closer look reveals that Fidelity was buying both BTC & ETH, while ARK, Grayscale, and VanEck continued to sell. Therefore, the market participants are required to remain vigilant over the next few days.
