Bitcoin (BTC) and crypto holders are enjoying the fruits of their labor on February 10 after the price of bitcoin rose shortly after the US Bureau of Labor Statistics showed a 7.5% increase in the consumer price index (CPI). This indicates that inflation continues to worsen as fiat currencies lose their purchasing power.
Data from Cointelegraph Markets Pro and TradingView show that after trading below $ 44,000 in the early hours of February 10, Bitcoin rose to an intraday high of $ 45,850 after the CPI data was published and most of the major stock market indices fell negative. .
1-day BTC / USDT chart. Source: Trading View
Here’s a look at what a few analysts have to say about how the CPI reading on February 10 may affect Bitcoin’s price action going forward and levels to see as the world fights rising inflation.
Bitcoin is entering a new cycle
“We are now in a new cycle,” said Ran Neuner, host of Crypto Trader on CNBC, who posted the following chart showing the February BTC hack as part of a cyclical pattern that Bitcoin has traded over the past year.
Btc / usd 1-day chart. Source: Twitter
As you can see in the chart above, this is the second time in less than a year that BTC has reversed its course to rise after a sharp downtrend.
“This CPI jump is a confirmation that higher interest rates / CPI are part of an old cycle. Since we have broken the trend line, the news is different, the narrative is different. This is no coincidence. Be a cyclist.
Analysts say months of correction are over
Insight into this trend reversal after a three-month correction was provided by technical analyst and Twitter user CryptoBirb, who posted the following chart describing BTC’s range trading over the past year, saying: “Luckily, Bitcoin could see a continuation during a trend, to and with over $ 50,000. ”
Weekly BTC / USD chart. Source: Twitter
If BTC can maintain momentum at these levels, “Bitcoin has targets close to $ 46,300 to $ 46,500.”
“The main line in the sand is set at $ 51,000 depending on bitcoin price action. We can expect this level to be a magnet for BTC / USD if we want to continue the trend.”
Related: Bitcoin refuses to sell since 7.5% US inflation fails to keep BTC low for long
Separate BTC price from shares
The bullish performance seen in the cryptocurrency markets in February was highlighted in comments by Dalver Mandara, a quantitative researcher at Macro Hive, who noted that the “remarkable gains” were achieved “as markets adapt to increased Federal Reserve tightening and prices.” for further improvement. “. to the European Central Bank’s move to potential highs in 2022.”
The fact that the crypto market has been able to rise despite tighter liquidity conditions than expected “suggests that the macro factor may affect them less than before,” Mandara said.
Mandara pointed to Bitcoin’s correlation with technology stocks, which have now fallen from a peak of 75% last week to 50% this week, as evidence of this reversal in the impact on Bitcoin’s price.
30-day moving correlation between BTC and NASDAQ. Source: Macroley
“Overall, we still believe that the general background for cryptocurrencies is negative, but the chain / flow figures are becoming more positive, so overall we are moderately optimistic.”
The total market value of cryptocurrency is currently $ 1.996 trillion and the Bitcoin dominance is 41.9%.