Bitcoin consolidated around the $30,000 mark on Wednesday, as markets prepared for the release of the latest inflation report in the United States. Consumer prices in the U.S. are expected to fall to 5.2% in March, down from 6% the month prior. Ethereum also consolidated, dropping back below $1,900.
Bitcoin (BTC) consolidated around the $30,000 mark on Wednesday, as markets anticipated the release of the upcoming inflation figures from the United States.
Ahead of the report, BTC/USD fell to an intraday low of $29,865.20, which comes less than 24 hours after trading at a high of $30,509.08.
This comes following a strong surge in price on Tuesday, which saw bitcoin climb to its highest point in ten months.
Overall, sentiment in the market is mostly higher, which comes after consumer prices in China fell to an 18-month low.
Today’s marginal decline in price has pushed the relative strength index (RSI) back towards a support point at 68.00.
The index is currently tracking at 68.89, and should it remain above the aforementioned 68.00 mark, there is a good chance that BTC could extend current gains.
On the other hand, ethereum (ETH) dropped below the $1,900 level during today’s session, falling by nearly 3% in the process.
Following a high of $1,923.81 on Tuesday, ETH/USD dropped to a low of $1,860.04 earlier in the day.
Today’s move came as ETH dropped below a key resistance level of $1,915, with a floor of $1,830 a potential target for sellers.
The drop in price coincided with the RSI falling below a resistance level of 63.00, with the index now at a reading of 58.44.
Should the index continue to drop, a breakout of a support point at 58.00 could occur, leading to further price slippage.
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Will lower inflation boost cryptocurrency prices? Leave your thoughts in the comments below.
Eliman was previously a director of a London-based brokerage, whilst also an online trading educator. Currently, he commentates on various asset classes, including Crypto, Stocks and FX, whilst also a startup founder.
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