Bitcoin price has eased on Sunday’s rally as investors’ focus shifts to the US inflation data scheduled for Tuesday. Analysts expect a core CPI reading of 0.4% MoM, which is lower than the prior month’s 0.7%. The crypto will also be reacting to Fed Chair’s testimony before Congress on Wednesday and Thursday.
Both events will avail cues on the central bank’s current position in tightening the monetary policy. Notably, higher-than-expected inflation data and a hawkish tone from the Fed Chair may act as a bearish catalyst for Bitcoin price.
BTCUSD price prediction
Bitcoin price is up by 0.38% at 34,389.48. After trading around 40,000 in mid-June, it has been range-bound between 36,650 and 32,000. It is currently finding resistance at 34,639.14 after rising from an intraday low of 33,027.58 on Saturday to 34,598.34 late on Sunday. On a two-hour chart, it is trading above the five and ten-week EMAs.
As investors await the US inflation data scheduled for Tuesday, Bitcoin price is likely to trade within a tight range in the near term. The upper and lower borders of the horizontal channel will probably be at 34,639.14 and 33,938.09 respectively. As a reaction to the US CPI figures, a move past the channel’s upper border will have the bulls eyeing the prior resistance level of 35.108.36 and psychological level of 36,000.
On the flip side, the bears may gain enough downward momentum to push the prices past 33,938.09, which is along the 25-day EMA. If that happens, the support levels to look out for will be 32,601.72 and the psychological level of 32,000.
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Bitcoin price chart
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