Bitcoin price has decreased by 2.3% to approximately $81,500 amid falling US inflation. The Producer Price Index data fell short of expectations, stirring concerns over the US trade war. The market’s reaction to this inflation data was muted, leading to forecasted volatility. Key resistance levels remain intact as Bitcoin trades below the 200-day simple moving average.

The price of Bitcoin (BTCUSD) declined by 2.3%, hovering around $81,500, following a drop in US inflation data. The February Producer Price Index (PPI) reported a 3.2% increase year-on-year, which fell below expectations, reflecting a continuous trend seen in the Consumer Price Index (CPI). This unexpected news has raised concerns about the US trade war, as both stocks and cryptocurrencies exhibited minimal responses to favorable inflation news.

According to The Kobeissi Letter, financial markets have reacted subtly to recent inflation data that would have previously triggered significant increases in the S&P 500. Kobeissi suggested that traders might brace for increased volatility as slowing inflation might escalate efforts in the trade war. The market’s lack of enthusiasm for financial easing ahead of the Federal Reserve’s interest rate decision was also noted, with a mere 1% chance of a rate cut indicated.

Current data suggests that Bitcoin price movements remain constrained within certain liquidity bands, with the 200-day simple moving average (SMA) serving as a resistance level. Keith Alan from Material Indicators remarked that Bitcoin is encountering substantial resistance at this SMA for the fourth consecutive day. The possibility of reclaiming this critical level appears low on the current day, despite any potential surprises from government announcements. Further, monitoring tools indicate significant resistance just below the $85,000 mark.

In conclusion, Bitcoin’s recent price drop has been attributed to declining inflation and its potential implications for the US trade war. With minimal market reactions to favorable economic data and the looming uncertainty surrounding interest rates, Bitcoin remains under significant resistance at the 200-day SMA, pointing to cautious trading in the near future. Investors are advised to remain vigilant and conduct thorough research before making decisions in this volatile environment.

Original Source: www.tradingview.com

Related posts:

Bitcoin Price Decline Amid Rising Inflation Fears and Trade War Concerns The Recent Price Decline of Dogecoin and Shiba Inu Explained Bitcoin Surges to New All-Time High at $77K Amid Trump’s Election Victory Potential Federal Reserve Interest Rate Changes Prompt Anticipation in Cryptocurrency Markets