Bitcoin and equities show significant volatility after higher than expected CPI readings

As expected, a lot of volatility was seen in the market today as CPI figures came out. Unfortunately for the bulls, the readings were higher than expected, implying that the Fed can continue with hawkish measures in the coming months.

More specifically, Core CPI came out higher (8.2%) than forecasted (8.1%), leading to a sharp drop in the price of Bitcoin as it lost \(19,000 to test \)18,200.

The S&P 500 reacted shortly after and fell ~4% before a bounce materialized.

Moving forward, bullish market participants may want to exercise caution, especially since the Fed pivot narrative appears unlikely to come into play soon.

Top altcoin gainers and losers

Gainers

• Fei USD FEI (+12.02%)
• Huobi Token HT (+11.80%)
• Toncoin TON (+7.15%)

Losers

• Convex Finance CVX (-12.16%)
• Klaytn KLAY (-11.43%)
• ETHPoW (IOU) ETHW (-9.27%)

BTC Technical Analysis

Bitcoin price cleanly breached several LTF support levels, including \(18,800 and \)18,500. With the market leader currently trading around $18,400, we can see a potential double bottom forming on the daily time frame along with volume exhaustion.

Moreover, as per divergences seen on different momentum indicators, there is some upside potential in the current price action. However, all of this can be misleading since lower volume could be explained by market participants unwilling to take losses as yet.

If BTC loses the $18,000 level, we could see an influx of aggressive sellers, potentially taking us toward a notable capitulaton.

ETH Technical Analysis

Ethereum has been bearish during the move-up and currently looks even worse. The second-largest cryptocurrency had a pivot point at $1,327 and ever since bears punched the price down from there Ethereum has been forming a Bollinger band squeeze along with bearish price action on the ETH/BTC pair.

Bulls will want to see the price of ETH stabilize above \(1,200, otherwise, we could see it dropping into the \)1,000 range.

Coin360 Daily Digest

Here’s a rundown of the major crypto market news from today.

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Disclaimer: None of the information here constitutes financial advice and market participants are advised to conduct their own research since cryptocurrencies are speculative assets with considerable risks.