Bitcoin (BTC) continued to rise as the Wall Street market opened on September 14, despite new data showing a resurgence in inflation in the United States. The price of BTC reached new highs for September, peaking at $26,762, according to data from Cointelegraph Markets Pro and TradingView.
This upward momentum in Bitcoin came despite the US inflation rebound, as confirmed by both the Consumer Price Index (CPI) and the Producer Price Index (PPI) August prints. The PPI came in at 1.6% year-on-year, surpassing market expectations of 1.3%. However, the cryptocurrency market, including BTC, disregarded the implications of the inflation rebound and rejected the notion that US macro policy might remain more restrictive to curb inflation.
At the time of writing, there was almost no consensus on whether the Federal Reserve would raise interest rates again later in the month, according to CME Group’s FedWatch Tool. The odds of a rate hike pause stood at 97%. This disconnect between market sentiment and data was highlighted by the European Central Bank’s decision to raise rates by 0.25% on the same day.
The ECB’s decision marked its 10th consecutive rate hike, bringing rates to 4.5%, the highest since 2001. However, despite signaling that this could be the last hike in the current cycle, futures markets still suggested a 30% chance of continuation. This indicates that central banks worldwide are preparing for a prolonged pause with elevated rates as they fight against inflation.
In terms of BTC price predictions, market participants were hopeful that BTC/USD would surpass $27,000. Popular trader Jelle expressed optimism about Bitcoin’s performance, stating that breaking above the $26,400 resistance level could lead to a move towards $27,600.
Another analyst, Rekt Capital, took a more conservative stance, noting that Bitcoin could be following a chart fractal similar to its previous all-time high in 2021. He emphasized that as long as BTC holds above $26,000 as a support level, the bullish fractal pattern could be in play. However, he also pointed out that if BTC faced rejection after a relief rally, it could indicate weakening support at $26,000.
It’s important to note that this article does not provide investment advice or recommendations. Every investment and trading decision carries risks, and readers should conduct their own research before making any decisions.
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