Investors in wait-and-see mode in anticipation of fresh economic signals that could affect central banks’ tightening plans
The bitcoin price briefly exceeded the $31,500 zone at the start of the week but failed to preserve gains and retreated back to the $30,000 psychological level that remains in the market focus as the coin has been oscillating around this figure for a month already. After rejection from the mentioned high, the BTCUSD pair briefly dipped to the $29,300 zone that capped losses earlier in the week.
On Thursday, the largest cryptocurrency by market capitalization treads water just above $30,000, adding 0.46% on the day after a nearly 3% slump yesterday. As bitcoin has failed to overcome the $32,000 zone on many occasions in choppy trading as the crypto space has been affected by inflation concerns along with traditional financial markets.
Adding to nervousness in the market, the US SEC launched an investigation against Binance earlier this week to evaluate whether the BNB token initial coin offering violated securities rules. As a reminder, Binance is the world’s largest crypto exchange in volume terms.
At this stage, bitcoin is unlikely to escape the familiar trading range in the short term, suggesting the price will continue to stay depressed around $30,000 without a bullish catalyst. Investors stay in wait-and-see mode in anticipation of fresh economic signals that could affect central banks’ tightening plans.
In this context, Friday’s US CPI report will be in focus. Should the figures come in line with expectations or exceed forecast estimates, resurgent concerns over inflation may push both stocks and cryptos lower ahead of the weekend.
As such, the bitcoin price now needs to hold above $30,000 and avoid a major retreat that would take the prices below $29,300. On the upside, the immediate key target arrives at $32,000 as a decisive break above this level would pave the way towards $34,000.