The BTCUSD pair is flirting with the $24,600 zone that capped the ascent late last month
The price of bitcoin is up more than 30% since the market meltdown in June and keeps trending north these days. At that, the largest cryptocurrency by market capitalization is still down more than 50% from its all-time high late last year.
On Wednesday, bitcoin gained 3.51% to finish above the $24,000 figure for the first time since mid-June. The BTCUSD pair retains a bullish bias today, revisiting the $24,600 zone that capped the ascent late last month. The coin is up 2.36% since the start of the day.
The latest rally in the cryptocurrency market was due to fresh US economic data. The rate of inflation retreated to 8.5% year-over-year in July from 9.1% in June, with energy prices falling 4.6% last month and gasoline prices down 7.7%. as inflation eased from 41-year highs, stocks and cryptos jumped across the board as softer-than-expected CPI figures raised speculation the Federal Reserve will slow the pace of interest rate hikes next month.
However, one can’t be convinced of a market reversal at this stage, as the Fed keeps tightening, and the inflation in the United States remains elevated. Furthermore, Fed’s Daly said earlier today that they don’t want to declare victory on inflation coming down.
As such, it’s too early to call a bottom for bitcoin, albeit the technical picture keeps improving gradually. Riskier assets could come under renewed selling pressure as well, with recession threat persisting.
In the coming days and weeks, BTC will continue to monitor fresh signals from the Fed and the US economy. Any downbeat signs could disappoint investors both in the cryptocurrency and stock markets. A failure to regain the $25,000 figure could push the coin back below $20,000.