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- Thursday’s CPI data from the United States Bureau of Labor Statistics is expected to have a notable impact on the Bitcoin price action amid short-term weaknesses following a drop below the crucial support level of around $27.2k.
- The altcoin market has generally failed to capitalize on Bitcoin’s weaknesses with Ethereum revisiting the February support level despite the recent Ether futures ETF frenzy.
As the crypto market continues to get shocking revelations from the ongoing trial of the former FTX boss Sam Bankman-Fried (SBF), Bitcoin’s (BTC) price action has been depicting short-term weaknesses that have seen the altcoin market not spared from the bearish outlook.
According to our latest crypto price oracles, Bitcoin price exchanged around $26,787 on Thursday, down 1 percent in the past 24 hours. Crypto traders have been watching from the sidelines as the top coin deciphers the next market direction. Furthermore, the average 24-hour trading volume for the leading stablecoins, Tether (USDT), was slightly higher than that of Bitcoin and Ethereum combined.
Expect Bitcoin Volatility Amid High-Impact News
The dilemma in Bitcoin’s price action has coincided with the Uptober crypto narrative and high-impact news from the United States. Notably, Bitcoin price has been identified to react to inflation data from the United States amid mainstream adoption of digital assets through DeFis and smart contracts.
On Thursday, the United States Bureau of Labor Statistics is expected to release data on the Consumer Price Index (CPI), which is used to determine the change in the price of goods and services purchased by consumers. Mid-September, the US Bureau of Labor Statistics announced the monthly CPI at 0.6 percent and experts believe a drop by half is very likely.
Essentially, an actual greater than forecast is considered good for the United States dollar, which is converse to the Bitcoin and altcoin market.
Worth noting that the United States Bureau of Labor Statistics will also be detailing core monthly CPI and the YoY CPI, which accounts for the majority of the overall inflation data. Meanwhile, the United States Department of Labor is expected to release the initial unemployment claims, which is considered an important factor in the determination of the overall economic health.
BTC Price Action
From a technical standpoint, Bitcoin traders should expect further weaknesses toward $25K before an upward rally to retest $30k. However, short-term volatility could see Bitcoin revisit $27k before dropping further in subsequent days. Moreover, the daily and weekly death cross between the 50 and 200 Moving Averages have weighed heavily on the bullish uptober narrative. According to an on-chain analysis conducted by Glassnode, Bitcoin price must secure a sustained close above $28,233 to ignite a bull run.
#Bitcoin Warm Supply Realized Price indicator suggests that the bull run will only reignite if $BTC secures a sustained close above $28,233! pic.twitter.com/3aRkBcPtnT
— Ali (@ali_charts) October 12, 2023
Meanwhile, the Bitcoin dominance has been showing notable strength over the altcoin market in the past few days. Moreover, the Bitcoin dominance has been on a rising momentum YTD to about 51 percent on Thursday.
