Having fallen to an $18.3K low after the Thursday release of the United States inflation statistics, Bitcoin (BTC) has renewed pace and climbed past $19K.
Since this is an important level, according to market expert Ali Martinez, the top cryptocurrency should maintain a price above $19,200 to lessen selling pressure. He emphasized: “roughly 2.5 million addresses bought nearly 1.5 million BTC at $19,200. The longer Bitcoin continues trading below $19,000, the higher the pressure these investors will feel to exit their long BTC positions to cut losses short. Consequently accelerating the downward pressure.”
Roughly 2.5 million addresses bought nearly 1.5 million $BTC at $19,200. The longer #Bitcoin continues trading below $19,000, the higher the pressure these investors will feel to exit their long #BTC positions to cut losses short. Consequently accelerating the downward pressure. pic.twitter.com/hgMMApyswM
— Ali (@ali_charts) October 13, 2022
The Consumer Price Index (CPI) increased by 0.4% in September, according to the most recent inflation data provided by the United States Bureau of Labor Statistics. A broad market response followed, which sent tremors through the cryptocurrency market and caused Bitcoin (BTC) to plunge as low as $18,319 once the news hit the market.
Santiment, a cryptocurrency information service, said: “Thursday has been an expectedly volatile day after inflation data was released. Bitcoin dropped to $18.3k, its lowest price level since September 21st. However, as traders were in the midst of stopping the bleeding, BTC & the SP500 rapidly recovered.”
Based on the back-and-forth in the market, the social dominance of Bitcoin (BTC) has decreased, but the top cryptocurrency was up 3.38% on the previous day to touch $19,623 in the trading session. The dominance of Bitcoin (BTC) has diminished as a result of certain traders aiming for quick gains. According to Santiment: “traders are chasing short-term pumps right now to salvage losses. Weak hands dropped out of crypto in 2022, & long-term traders are waiting for Bitcoin to begin receiving the spotlight again. When BTC social dominance is high, prices typically rise.”
📢 Traders are chasing short-term pumps right now to salvage losses. Weak hands dropped out of #crypto in 2022, & long-term traders are waiting for #Bitcoin to begin receiving the spotlight again. When $BTC social dominance is high, prices typically rise. https://t.co/n7uqUnslBr pic.twitter.com/WycLauNtGW
— Santiment (@santimentfeed) October 14, 2022
In order to rein in spiraling inflation, the Federal System of the United States has raised interest rates, which has hurt the cryptocurrency industry. It is still unclear what action the Fed will undertake in the month to follow given that the most recent CPI numbers were higher than anticipated.