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Core US Inflation Data Prevented a Crypto Rally, Says Analyst

Published 13/04/2023, 12:20
Core US Inflation Data Prevented a Crypto Rally, Says Analyst

  • Crypto Rover uploaded his latest technical analysis for BTC and ETH today.
  • The analyst stated that Core US Inflation Data is preventing a crypto market rally.
  • At press time, both BTC and ETH are up over the last 24 hours.

The crypto analyst Crypto Rover uploaded his latest technical analysis for the crypto market leaders Bitcoin (BTC) and Ethereum (ETH) this morning. The Youtube video started off with the analyst stating that the crypto markets did not rally as expected given the positive outcome of yesterday’s FOMC meeting.

The analyst attributed the lackluster price movement seen across the crypto market to the Core U.S. Inflation data which was released yesterday. According to the crypto analyst, the Core U.S. Inflation Rate is still relatively high and as a result has hindered the crypto market’s prospects of entering into a strong relief rally over the last 24 hours.

The analyst also added that the Core U.S. Inflation Rate is expected to remain high for the next few weeks, which is bearish for the entire crypto market. Despite there not being a strong rally in the crypto market yesterday, the analyst still brought up the possibility of BTC rising to $32K in the upcoming days given the descending channel pattern that has formed on BTC’s 4-hour chart.

4-hour chart for BTC/USDT (Source: TradingView)

Should BTC’s price break out above this channel in the next few days, then it will look to rise to the $32K mark, the analyst added. He did state, however, that BTC’s price breaking out below this channel will drag the market leader’s price down to $28K, which is the next major support level.

With regards to ETH, Crypto Rover shared that the highly-anticipated Shanghai Upgrade for ETH recently went live. The analyst highlighted that only 1% of ETH validators withdrew their stake from the chain, which is a significantly lower amount than what the market had forecasted.

Daily chart for ETH/USDT (Source: TradingView)

Crypto Rover also stated that there is a rising wedge pattern present on ETH’s daily chart, which he called a weak market structure. As a result of this weak market structure, the analyst stated that there is a possibility that ETH’s price will drop in the coming few days.

At press time, ETH’s price stands at $1,923.01 while BTC was able to gain 0.21% to trade at $30,071.91 according to CoinMarketCap. The weekly performances of both ETH and BTC are also in the green. Currently, ETH’s price is up 2.65% over the last 7 days and BTC’s weekly price performance stands at +7.85%.

Disclaimer: The views and opinions, as well as all the information shared in this price analysis, are published in good faith. Readers must do their own research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be held liable for any direct or indirect damage or loss.

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