Bitcoin surged above $28,000 amid weakening US inflation. But is the fix complete?

Exhausted by meme-tokens, bitcoin waited for the release of data on the consumer price index (CPI) and rushed up.

The data came out at 15:30 (MSK) and brought positive to the markets, which are under pressure from the hawkish policy of the US Federal Reserve, which raised the rate for the tenth time in a row a week ago. Here is how trader Crypto Tony illustrated the atmosphere of the stock market half an hour before the CPI update:

The head of the Fed enjoys the fruits of his hands

However, the index turned out positive: 4.9% against the expected 5.0% year on year. Thus, consumer inflation has been declining in the US since July 2022, which could be a good reason to pause further rate hikes.

Inflation dynamics in the USA for 5 years

Bitcoin reacted with growth. According to the Cryptocurrency Screener Cryptovizorwhich determines the price of BTC/USD based on the results of trading on spot exchanges, within an hour the asset rose by 2.31% to $28,343.

30 minute bitcoin chart. Source: Cryptovizor

Michael van de Poppe, head of trading firm Eight, has shown enough restrained reaction for all this positivity. He stated that his previous forecast about a test of the $27,400 level was justified, however, he admitted that he still dreams of opening a long position from $26,800.

What do we need now? Confirm $27,800 as support and break $29,200 resistance. $29,200 is an important milestone on the way to new highs.

4 hour bitcoin chart. Analysis by Michael van de Poppe

According to released yesterday video reviewthe analyst expects the price of bitcoin to rise to $40-50 thousand in the coming months.

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