The hotter-than-expected CPI rate yesterday hurt bitcoin. Headline inflation did not fall as much as hoped, and core CPI was much hotter than anticipated. The Fed will continue to hike, and risk-sensitive instruments will remain under pressure, including cryptocurrencies.
BTCUSD has fallen 9.25% since its close on Monday and is trading at $20,319. However, prices have steadied for the time being. As long as bitcoin doesn't fall into its lower channel (blue arrow), and the stochastic holds with a positive slope (green rectangle), the 20,000 level seems safe. However, given that inflation is still hot, support is fragile.
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.