Bitcoin Price Makes a New High Above $26K As CPI Data Clocks in at 6%! Is $30K Imminent for BTC?
The last week brought a severe bearish rally for BTC price as the collapse of multiple crypto-friendly banks brought multi-week lows for Bitcoin. However, as the market recovers from its turmoil and USDC repegs to $1, it has sparked a fresh bullish season in the crypto market. Recently, Bitcoin price has broken 2023’s record as it registered a new high above $26K following the release of CPI data. As a result, investors are gaining more confidence to open long positions with an initial target of $30K.
Will BTC Price Sustain Its Rally?
Bitcoin (BTC) has bounced back from the losses it incurred last week, primarily caused by failing banks in the United States. This, in turn, led to a depeg in major US-based stablecoins. Nevertheless, there were indications towards the end of the week that the Federal Reserve would compensate impacted investors, which helped restore confidence and ignite a recovery rally.
Bitcoin’s surge has coincided with a crisis in the banking sector, and widespread bank runs. Today’s release of CPI data, which came in at 6%, has further fuelled Bitcoin’s rally, with BTC rising intraday above $25,000 and eventually reaching $26,000.
According to the U.S. Department of Labor, CPI increased by 0.4% on a seasonally adjusted basis last month, while the all-items index, which indicates inflation, rose by 6% over the past year. Although inflation is still on the rise, the pace has slowed down compared to the previous month. This development could potentially cause the Federal Reserve to consider slowing down or even halting their interest rate hikes scheduled for next week.
As a result, it is anticipated that the ongoing bullish rally in Bitcoin’s price chart will continue to persist. There is even the possibility that investors may witness Bitcoin’s price surging to a new high of $30K by the end of March.
Here’s What to Expect from Bitcoin Next
Bitcoin has reached its highest point in nine months, with its price surging to $26,400 just moments ago. Moreover, the market cap of Bitcoin has regained the $500 billion mark.
As of writing, Bitcoin trades at $26.1K, gaining over 16% in the last 24 hours. After breaking above the crucial resistance of $25.5K, the BTC price has made a new high at $26.4K, signifying intense buying pressure.
From the $26K level, the BTC price is expected to fly to a new high at $30K in the next few days. Furthermore, as the RSI level is trading at 68, it creates more room for Bitcoin to extend its bullish rally as there is no significant resistance level between $26K-$30K. Hence, Bitcoin may soon reach its last year’s June levels before facing a rejection.