Bitcoin on May 10 – After the announcement of US inflation, BTC in roller coaster mode


A day synonymous with volatility – Today traders had their eyes on inflation in the UNITED STATES. THE inflation data were published in the afternoon, and it turns out that they are lower than estimated. THE bitcoin price took the opportunity to climb more than 2%. However, at the end of the day, the price suddenly fell below $27,000.

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Bitcoin price drops more than 4% in one hour

Bitcoin takes advantage ofUS inflation For go back to the risebut sellers showed above $28,000. Therefore, the bitcoin price fall of 1.5% in 24 hours :

Performance of Bitcoin against different pairs – Source: Coincheckup

With this violent movement, the course more than 4% drop in one hour. The price of BTC shows a 4% drop in seven daysand nearly 5% in one month. The BTC/ETH pair drops by 0.8% in one hour.

Bitcoin Price Volatility After US Inflation Results

We know it. This kind of event can bring volatility in the financial markets. This is the case again here, with the US inflation release. It seems prudent to remain observant at the time of these publications.

Bitcoin Price Sees Bullish Volatility on US Inflation Release - May 10, 2023
Reaction of Bitcoin and the dollar index during the publication of US inflation

Bitcoin price benefited from the result to climb instantly more than 2%. For its part, the dollar index fell. The dollar index represents the dollar strength against a basket of currencies. By their nature ofrisky assetscryptocurrencies take advantage of the weakness of the dollar to climb.

The day could have continued on this trend, but it was without counting on the cryptocurrency volatility. Sellers reacted above $28,000 :

Bitcoin Price Drops 5% in One Hour - May 10, 2023
Price of Bitcoin against the dollar (1 minute)

Bears Take BTC Under $27,000showing a drop of approximately 5% in one hour. Be careful, the volatility still seems present since the price then rebounds more than 2%. A short respite?

Bitcoin price reacts at the support level at $26,800

The price of BTC has once again blocked against the bearish trendline. However, the rack at $26,800 allowed a rebound:

Bitcoin bounces off the 4H support level at $26,800 - May 10, 2023.
Bitcoin price against the dollar (4H)

Buyers must once again react in order not to lose the rack at $27,500. If the sellers prevail, the price could return to the level of the rack at $26,800 and thus score an “M top” in 4H. As long as the price is below the bearish trendlineand under the resistance at $28,500it will remain fragile.

THE ROI arrives on a resistance zone with the presence of bearish trendline. A rejection could intervene. However, from the bullish volatility could fall into place in the event of a break.

The course of Bitcoin took advantage of the publication of US inflation to rise again, but the rise was short-lived. Indeed, BTC is now showing a drop of 1.5% in 24 hours. Buyers are going to have to react quickly to retake support at $27,500.

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