Bitcoin bounces off key support after TA-CPI announcement

Bitcoin (BTC) price bounces off key support against the U.S. dollar (USD) Consumer Price Index (CPI) Announced in the US. The indicator measures U.S. dollar inflation and hints at a potential slowdown.

Bitcoin price retreated from $24,200 to $22,800 despite showing signs of easing the rally, but faced breaking resistance ahead of CPI news sentiment. (Data feed from Bitstamp)

BTC price analysis on the weekly chart

BTC Weekly Price Analysis | Source: BTCUSD on Tradingview.com

Looking at the chart, the price of BTC is trading at a weekly low of around $19,100, bouncing off this area and rallying to a price of $24,300.

The price has built more momentum as it faces resistance at $24,300.

If BTC price on the weekly chart continues this bullish structure, it could quickly revisit $28,000.

Weekly resistance for BTC price – $28,000.

Weekly support for BTC price – $19,100.

BTC Price Analysis on Daily (1D) Chart

BTC Daily Price Analysis | Source: BTCUSD On Tradingview.com

BTC price found strong support around $20,600, which appears to be an area to watch on the daily chart.

BTC bounced off the support and formed a rising wedge as it faced resistance above $24,200.

At the time of writing, BTC is priced at $23,980, attempting to break above the $24,000 resistance, which corresponds to the 50 exponential moving average (EMA).

If the price of BTC fails to break above the 50 EMA area while breaking below the rising wedge, $20,600 would be a good support for a sustained sell-off and a possible price rally.

With more bids to buy, and a positive CPI announcement, we could see the price of BTC break above $24,300 and BTC price will move higher.

The RSI for BTC price on the daily chart is above 50, indicating healthy buying in BTC.

The volume of BTC is pointing to a low bid price, which suggests that the bulls want to know the outcome of the CPI meeting.

Daily (1D) resistance for BTC price – $24,300.

Daily (1D) support for BTC price – $22,800, $20,600.

BTC Price Analysis on Four-Hour (4H) Chart

Four-hour price analysis of BTC | Source: BTCUSD on Tradingview.com

The price of BTC is forming a rising wedge on the 4H chart as the price faces a rejection at $24,000.

BTC is priced at $23,990 and is trading above the 50 but above the 200 EMA at $23,200 and $22,700 on the 4H chart. These prices will act as support areas for BTC on the 4H chart.

Four-hour (4H) resistance for BTC price – $24,300.

Four-hour (4H) support for BTC price – $23,200, $22,700.

With a positive CPI, the price of BTC will move higher.

Featured image from NewsBTC, Charts from TradingView.com 

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