Bitcoin is fluctuating around $85,000, hardly affected by the lower-than-expected U.S. inflation figures and is being closely watched.
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Crypto chart analyst Ali Martinez notes that Bitcoin is still stuck in a narrow range on lower time frames, encountering resistance just below $90,000 and finding support near $85,400. A breakout could trigger a bullish trend, while a breakdown could signal more difficulties ahead.
Daan Crypto Trades also offers an interesting perspective.
Based on past monthly trading patterns, Bitcoin is likely to experience stronger price volatility before the end of this month.
As of now, the difference between the lowest and highest monthly levels of Bitcoin is about 12%, less than usual, as the monthly candlestick chart typically shows a wider price range in over 90% of cases. Therefore, statistically, the chances of both the highest and lowest monthly levels being set at the beginning of the month are very low.
This suggests that one of those support/resistance levels still has the potential to be broken. Although the data does not indicate a specific trend, it implies stronger volatility in the near future, with Bitcoin being close to the middle of the monthly trading range and needing at least a 5% increase to test one of the two extremes.
Michael van de Poppe, another analyst, stated that Bitcoin's recent price action shows the market's sensitivity to macro events, even with positive economic data.
Despite the favorable inflation figures from the U.S. and a short-term price increase, Bitcoin quickly reversed, highlighting the importance of the $88,000 level as a crucial resistance point that must be surpassed to restore growth momentum.
The analyst pointed out that the Bank of Japan's policy decision is the most important catalyst of the week, noting that while stocks like Nasdaq are rising and gold remains stable, cryptocurrencies are lagging as traders prepare for the possibility of interest rate hikes.
