Bitcoin (BTC) dips ahead of potential US inflation increase: Price analysis
The post Bitcoin (BTC) dips ahead of potential US inflation increase: Price analysis appeared on BitcoinEthereumNews.com.
Bitcoin (BTC) fell from its new top of $123,200 on Monday and into Tuesday, to currently stand at just under $117,000. Besides the reason of buyer exhaustion, Tuesday will see the new monthly CPI data print, with experts forecasting a 0.3% month on month rise. How will Bitcoin react to this? Potential uptick in U.S. consumer price inflation? As predicted by plenty of analysts over recent times, inflation could start to rear its ugly head again in the US. Expected to feed through from the Trump tariffs, an incremental increase in consumer price inflation may be about to make its presence felt. The new monthly figures will be released at 8:30 a.m. Eastern Time, around 5 hours from now. CPI is expected to increase by 0.3%, while Core CPI is predicted to rise by the same margin. The figures are an increase on the previous 0.1% monthly rise. This translates to 2.6% year on year. Of course, the actual data may be above or below what is estimated, and this could then cause the U.S. stock market to turn in one direction or the other, with the potential to further affect Bitcoin and the crypto market. How far down will this correction go? Source: TradingView The short-term chart for Bitcoin reveals the current corrective phase. The sharp and sustained rise out of the bull flag could not keep going indefinitely, and so a correction at this point was favourite to happen, and is very healthy for the $BTC price going forward, allowing momentum/overbought indicators to reset. It now remains to be seen just how far down the price will go. The Fibonacci retracements for this move out of the bull flag, and to the new all-time high, suggest the price could come back to $115,000, or $113,500. The horizontal level…
