© Reuters.
Investing.com – The price has steadily climbed in recent days, even crossing the psychological barrier of $22,000. On a weekly basis, the gains amount to more than ten percent, which does not please all investors, however.
More than 45,000 traders had bet on a fall in prices, which earned them losses of nearly $177 million.
The cryptocurrency market has finally managed to regain a total market capitalization of over $1 trillion, but momentum is expected to wane in the coming hours.
More and more investors are shifting their focus to tomorrow’s release. If they differ from forecasts, market expectations about the next one will change.
For riskier assets like cryptocurrencies, it is especially the higher than expected inflation data that would be a problem. The market would expect the Fed to raise interest rates further, while the period before the end of the rate hike phase would lengthen. This should deprive the market of additional liquidity, which would weigh on Bitcoin, et al.
The market continues to believe that the Fed will reduce the pace of rate hikes, as City Index Ltd chief analyst Tony Sycamore explained:
“The market has realized that it’s been quiet for a few weeks in the face of the Fed’s relentlessly aggressive monetary policy. And that the pace of central bank rate hikes is likely to slow.”
Tomorrow’s inflation figures can reinforce this view and support the market, or on the contrary become a stress factor.
Technical thresholds to watch on Bitcoin
Currently, the is gaining 2.71% daily at a price of $22.196. The strong September 9 rally has reached the 50 percent Fibo retracement, but has yet to break above it based on the day’s closing price.
It wasn’t until the next day that this was possible and the 38.2 percent Fibo retracement of $22,311 was thus targeted. Should the bulls manage to break above it on the daily close, the next target will be the resistance of the 23.6 percent Fibo retracement at $23.417.
If the bears prevent an extension of the upside move, the 50 percent Fibo retracement at $21,417 offers immediate support. Below, the 61.8% Fibo retracement at $20,523 follows.
By Marco Oehrl