Cryptocurrency Market Responds to US Consumer Price Index: A Detailed Analysis
Summary:
This article discusses the recent fluctuations in cryptocurrency, spurred by lower-than-expected Consumer Price Index data from the US. Bitcoin saw a rise in value, with bullish traders demonstrating resilience. Amidst the fluctuations, Japanese firm Metaplanet increased its Bitcoin holdings. The performance of other top cryptocurrencies including Ether, BNB, Solana, XRP, Dogecoin, Toncoin, Shiba Inu, Cardano, and Avalanche is analyzed, highlighting their potential for future growth or decline.
Bitcoin (BTC) experienced a sharp increase in value when the United States' Consumer Price Index (CPI) data was reported as lower than expected. No change in CPI data was noted from the previous month, and an annualized 3.3% inflation rate indicated a deceleration from a prior rate of 3.4%, both rates being 0.1% less than anticipated. The strong rise from the $66,000 mark demonstrates that bullish traders are maintaining their position and making purchases at solid support levels. Until a significant move above $73,777 or below $56,552 occurs, Bitcoin may continue to fluctuate in value.
During such fluctuations, Japanese company Metaplanet purchased 23.25 additional Bitcoin on June 11, increasing its Bitcoin reserves to a total of 141.07 Bitcoin, with the average purchase price standing at $65,365. It remains to be seen whether Bitcoin's recovery, as well as that of selected altcoins, can be sustained. By analyzing the charts of the top ten cryptocurrencies, we can gain further insights.
Despite dipping beneath the 20-day exponential moving average ($68,700) on June 11, Bitcoin found strong support at the 50-day simple moving average ($65,982). Traders actively bought the dip in Bitcoin, pushing its status above the 20-day EMA, which suggests possible oscillation in the range between $66,500 and $72,000 in the near future.
Ether (ETH) fell below the 20-day EMA ($3,655) on June 11 due to an increase in sell-offs resulting from its failure to exceed $3,730. However, demand at lower levels remains high as dips near the 50-day SMA ($3,388) were actively bought.
BNB (BNB) dropped below the 50-day SMA ($605) on June 11, but the lower levels could not be maintained, indicating buyers' interest in dips. The currency is now facing an attempt by the bulls to push its value beyond the overhead resistance level of $635.
After breaking beneath the 50-day SMA ($157) on June 11, Solana (SOL)'s price rebounded quickly from the further support line of the descending channel pattern on June 12.
XRP (XRP) saw a bounce off a critical support point at $0.46 on June 7, though the resulting rise in demand was not sustained. The potential for increased sell-offs presents if currents trends continue, with the bears making another attempt to sink XRP below $0.46.
After a sharp rise from $0.13, Dogecoin (DOGE) indicates that bulls are not waiting for a substantial correction before buying. If current trends continue, every relief rally could result in sell-offs, with minor support at $560 at risk.
Lastly, Toncoin (TON) faced a bearish attempt to pull its value below the uptrending line on June 11, but resisted successfully. Shiba Inu (SHIB) and Cardano (ADA) are both encountering buying on dips and selling on rallies as they teeter between support and resistance levels. Avalanche (AVAX) had dips near the support bought and towered close to the resistance sold, indicating a range trade situation.
Published At
6/12/2024 6:57:37 PM
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