April was a busy month in the cryptocurrency markets. Bitcoin recorded an increase of approximately 12 percent in value on a monthly basis, in parallel with the rapid rise following the strong technology company balance sheets, especially in the US stock markets. On the other hand, the latest inflation data announced in the USA has created a new caution among investors.
Historical peaks in US indices
The leading US index, the S&P 500, reached an all-time high of 7,220 points as technology giants such as Google and Apple announced better-than-expected financial results. At the end of the day, the index closed approximately ten points lower. While underlining the growth of the index over the years, investment analyst Charlie Bilello pointed out that the S&P 500, which was at 5,600 points a year ago, was at 4,200 points five years ago and only 2,100 points ten years ago.
While the bullish mood in the markets is strengthened by the impact of strong balance sheet announcements in the technology field, the S&P 500 has added a total market value of more than 8 trillion dollars since the end of March.
Inflation concern and the course of Bitcoin
On the other hand, according to data published by the US Department of Commerce Bureau of Economic Analysis, personal consumption expenditures (PCE) inflation was measured as 3.5 percent in March. This rate was recorded as the highest level since August 2023. PCE stands out as the inflation indicator that the US Federal Reserve primarily considers in its monetary policies.
Despite this, risk appetite remained high in both stock and cryptocurrency markets. CryptoAppsy According to data, Bitcoin completed April by moving towards $ 77,500 and achieved one of the strongest monthly performances since the beginning of the year.
However, Bitcoin price could not fully surpass critical support levels. According to CoinGlass’ monthly closing data, despite the 11.9 percent increase, the price has yet to stabilize with a weekly close above the 21-week exponential moving average (EMA). This technical indicator has only been permanently exceeded once since last October.
Stating that the retreat in Bitcoin continues, market analyst Rekt Capital commented: “Especially if a position cannot be taken on the EMA until the close of the week, this situation can be considered as a strong rejection.” The expert also emphasized that a technical retreat of the price to the region corresponding to the mid-60 thousand dollars will confirm the full upward break.
Risk appetite is strong but uncertainty remains
Despite the rise in April, some technical indicators are yet to be confirmed for a permanent bull market. Especially fluctuations in macroeconomic data and high inflation cause markets to be cautious.
Following the Iran tensions that broke out in March, inflation in the USA reached its peak in the last three years, which led to increased expectations for the data to be announced in the future. In this environment, although Bitcoin completed April with strong returns, it technically has difficulty exceeding critical limits.
