BTC Bulls Take Profit, PPI Shows Cool-off in Inflation

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Last week, the cryptocurrency saw a slight dip of 1.622%, from $1.233 trillion to $1.213 trillion. This was accompanied by US indices showing a growth higher than BTC, ETH and the broader crypto market and ending the week with gains higher than 1%. The initial push from positive CPI data were further solidified by positive PPI numbers but the effect on the markets wasn’t very high. Towards the end of the weak, a large move to the downside was seen in crypto markets due to a sudden selloff. The crypto markets have been maintaining high levels for some time, and a pullback is natural.

btc price analysis

Price Analysis

Bitcoin fell from $31,000 last week, indicating that bulls were taking profits. The price was driven down to $28,500 by the bears. If the price rises from the $28,500 mark and breaks over $30,500, it indicates that traders remain bullish and consider price dips as a buying opportunity.

The bulls will next try to drive the price back over $31,000 and towards the big overhead barrier at $32,500. In the near term, if the price goes below the $28,500 price support line, the $32,500 optimistic outlook will become irrelevant. This may empower the bears, who may aim to push the BTC/USDT pair down to $27,812 and then to $24,719 in the future.


Fundamental Updates

After a positive mark for CPI, PPI also marked at -0.5 on an MoM basis, which was substantially under the expected marks. Core PPI marked at -0.1% instead of the projected 0.2%. Multiple data points are pointing towards a cool-off in the raging inflation that was seen for a substantial amount of time, but the market conditions are still sensitive.

On April 14th, the retail sales mark came in at -1.0%, which is a steep reduction in overall purchases being observed in the market. The change in retail actions is highly indicative of the kind of cooldown that Fed officials wanted to see in the markets. Treasury Secretary Yellen and a lot of FOMC members are set to speak in the coming 2 days.

These speeches can hold important guidance for the moves forward from different government entities. Apart from this, there aren’t any significant data releases next week apart from the advance GDP’s QoQ data mark that’s set to release on April 27th. It has shown a lot of weakness since February. The next week can show slight movements for BTC in absence of any severe market data being published. 

Bitcoin returns were -4.3% for this week. The Alpha Blue Chip Focused Strategy returns were 3.28% during the same period (13 APR – 20 APR). The Top Cap Digital Assets Strategy and Arbitrage Opportunities and Balanced Strategy returns were 6.89% and –0.57%, respectively.

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