According to the cryptocurrency data monitoring platform, Cryptoquant, a new metric that is used to predict the creation of a long-term bottom has shown a distinct pattern in Bitcoin`s chart.
According to assessments, the most recent occurrences of this pattern were in 2019, 2015, and 2012, after which Bitcoin saw a long-term trend of increasing prices.
It is feasible to see a pattern that has previously been observed in market bottoms when a long-term chart of Bitcoin’s price is combined with a line showing the 200-day moving average (in blue) and a line showing the realized price (in orange).
The CPI report is imminent
Most critically, this information has come to light at a time when the Consumer Price Index (CPI) is imminent.
The Consumer Price Index (CPI) for January will be released on February 14, and its publication is expected to have a significant impact on the macroeconomic backdrop this week.
There is a growing consensus that inflation will continue to fall, a development that, despite a dip in risky assets at the beginning of February, might still be supportive of these markets. Anxiety is rampant after strong January employment figures and an upward revision to the December CPI.
Experts claim that both bulls and bears want the report to support their positions since whichever side is correct would control the market for the next month. If the CPI came in higher than anticipated, several market supporters warned that the market would see a “massive fall.”
In associated reports, following an all-time high of 39.35 trillion that was maintained throughout the course of the preceding two weeks, the difficulty of mining Bitcoin dropped by 0.49% on February 12, 2023. After the network registered a 14.94% rise in difficulty over the course of the previous month, bitcoin miners are getting a temporary reprieve thanks to the fall in difficulty.
Conclusion
In conclusion, the current price of Bitcoin is $21,708.69. Bitcoin’s value has decreased by 0.71% during the last day while the market cap for this pair rests at $418,752,520,927. It is to be seen how Bitcoin and the broader cryptocurrency market behave ahead of the CPI release.
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