Bitcoin (BTC/USD) Talking Points:
Bitcoin (BTC/USD) has risen above critical resistance after the US CPI print boosted demand for speculative assets.
With inflationary pressures on the rise, next week’s FOMC meeting minutes (22 September) could be a make or break for digital assets if the Federal Reserve hints at near-term tapering.
However, with softer CPI’s pushing out expectations of tapering, Bitcoin and Ethereum have managed to hold on to recent gains, at least for now.
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Bitcoin (BTC/USD) Price Action
After the formation of a golden cross on the daily chart, Bitcoin prices have risen above the 23.6% Fibonacci retracement level of the June – September move at $47,000, in an effort to reclaim the key psychological level of $50,000 mark which remains as critical resistance for both the short and longer-term move.
With price action currently encapsulated between prominent levels, the ability to break above the key psychological level of $48,000 may give rise to further bullish momentum and a possible retest of $50,000 and a probable drive towards the next key Fibonacci resistance level of $51,734.
Bitcoin (BTC/USD) Daily Chart
Chart prepared by Tammy Da Costa using TradingView
— Written by Tammy Da Costa, Analyst for DailyFX.com
Contact and follow Tammy on Twitter: @Tams707