Last 3 hours left! CPI data is coming out in just 3 hours and BTC is expected to be Bearish
CPI is more likely to come out a little hot, which means it can be bearish for Bitcoin in the beginning.
The main reason is simple. During March, oil prices stayed high because of the war tension and that usually pushes inflation higher. So even if some people are expecting soft data again, this time the number can surprise the market on the upside.
What matters for Bitcoin is the market reaction. If CPI comes higher than expected, traders will start thinking the Fed may stay strict for longer and that usually puts pressure on risky assets like Bitcoin. In that case, Bitcoin can drop fast in the first reaction and take liquidity from below before it finds support. So short positions will most likely win in the first hour.
So my view is that the first move after CPI is more likely to be bearish for Bitcoin, not because Bitcoin itself is weak, but because hotter inflation can scare the market for a while. That is why I would be going with shorts before the data.
But there is one important thing you should understand. If CPI comes lower than expected, then this whole bearish idea becomes weak and Bitcoin can squeeze up very quickly. That is why the data itself matters more than opinions once it is released. We will inform you the moment it comes out so you know what coming.
So in very simple words, I am expecting a bearish first reaction for Bitcoin. Stay informed and stay educated with Panda Traders
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