Bitcoin price (BTCUSD) is surging once again after one of the hardest weeks for crypto holders. The release of the February CPI report propelled the price above $26,000 as the data pointed towards a decreasing inflation. After a massive volatility spike, BTC price has entered a consolidation phase.
At press time, Bitcoin to USD is trading at $24,750 as the price couldn’t gain strength above $25,000. This is the same zone from where the price already faced multiple rejections in the last month. A reclaim of this level may unleash massive buying pressure on the price to soar toward the 28k-30k region.
Bitcoin Price Soars On Bullish CPI data
The February inflation data came out yesterday, which was in line with market expectations. The data showed a decrease in YoY inflation which fell from 6.5% to 6% in February 2023. Furthermore, the core CPI inflation also came out as expected at 5.5% on a YoY basis. These numbers were taken as a sign of decreasing inflation, and the BTCUSD price surged immediately.
As per most analysts, Bitcoin price prediction for 2023 can flip very bullish if the price closes a day above 25,000. On Wednesday, the price is training slightly below this level, preparing for another breakout attempt.
The latest BTC price surge comes just days after the stablecoins de-pegged. The markets experienced nerve-wracking FUD during the last weekend as most US dollar stablecoins lost their peg amid banking concerns.
Bitcoin Price Technical Analysis
Technical analysis of the BTCUSD chart reveals the cause of the ongoing retracement. The $26,489 level falls at the diagonal resistance line that is shown on the chart. Such resistance is very hard to break at the first attempt. In the coming days, the price can retest this level again. Another rejection from this level will be very bearish for the price.
It is also evident from the chart that Bitcoin perfectly retested the 200-day moving average. The bounce from 200 MA and the breakout above the $25,000 level can make the Bitcoin price prediction of $30,000 a reality. The upcoming FOMC meeting on 22nd March will keep the prices in check till next week.