Bitcoin (BTC) continued its current correction with a dip below $59,000 on Thursday. The alpha cryptocurrency may have been affected by the news out of the Consumer Price Index Report that inflation had increased 0.2% in September, which was a more than expected rise.
Inflation increase and SEC action weigh on $BTC
The possible reemergence of inflation might become a worry once again for the U.S. Federal Reserve. With Thursday’s publication of the inflation figures for September, it was found that CPI had risen 0.2%, while core CPI had increased to 0.3%.
While this news may have contributed to the sharp 3.6% dip for the price of Bitcoin, it also didn’t help when it emerged that the Securities and Exchange Commission (SEC) is going to sue prominent market maker Cumberland DRW, for allegedly trading crypto securities.
The response from Cumberland DRW on its X account was a firm counter to the SEC’s accusations:
Source: @CumberlandSays
$BTC price begins a recovery
Source: TradingView
Despite what could be construed as negative news, the $BTC price did recover strongly after the dip below $59,000. Currently more than 3% up from this point, it can be seen in the short term chart above that $BTC was able to hold above $59,680, and has also risen above the psychological $60,000 horizontal level.
The triangle the price is now within could be about to break to the upside. This break, should it be successful, along with the positive upward indication from the Stochastic RSI, could allow the price to continue upwards.
First target for bulls would be a higher high at $64,550, and then the next higher high at $66,500. Nevertheless, in order to really start turning things around, Bitcoin bulls will need to push the price back above the previous swing high at $70,000.
$BTC $61,000 support level still holding
Source: TradingView
On the higher time frame of the weekly, it can be observed that despite the recent dip, the $BTC price is managing to continue holding the very important $61,000 support. The wick down below this support level bears testament to the bulls buying the price back up.
At the bottom of the chart, the Relative Strength Indicator (RSI) shows the breakthrough of the descending trend line. The indicator line is currently pointing down, but should the Bitcoin recovery continue with enough strength, this could change by the end of this week, signalling that buyers are coming back into the market.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
