As the highly anticipated Consumer Price Index (CPI) report draws near on May 15, 2024, the potential impact on Bitcoin’s price and the broader cryptocurrency market looms large. The CPI data serves as a key indicator of inflation levels within the economy, and its readings should be closely monitored by crypto investors.
A higher-than-expected inflation rate could exert downward pressure on cryptocurrencies like Bitcoin, as it may trigger pressure on the price and shifts in investor sentiment.
Despite the potential headwinds, altcoins have demonstrated resilience, with most top cryptocurrencies either experiencing modest gains or declines over the past seven days. Toncoin (TON) price, for instance, surged 21%, while Ethereum (ETH), Solana (SOL), and XRP saw declines ranging from 3% to 5%. Bitcoin itself kicked off the week on a positive note, with its price climbing 2.5% and currently trading above the $62,000 mark.
Will Bitcoin Price Crash with Upcoming CPI?
Daan Crypto Trades, an influential analyst boasting nearly 400,000 followers X, shared his insights on the impending CPI release. He noted a lot of activity in the order books, with substantial long and short positions being established over the weekend, in anticipation of the CPI data.
While acknowledging the relative strength of altcoins compared to Bitcoin, Daan Crypto Trades believes that Bitcoin needs to stabilize above the $65,000 level to solidify a short-to-mid-term uptrend.
Lots of action in the orderbooks.
Big longs, big shorts all into the weekend with CPI again next week.
Alts doing better than $BTC which shows some sign of overall strength but would want to see #Bitcoin stabilize above $65K to really say we're back in the short/mid term.
Be…
— Daan Crypto Trades (@DaanCrypto) May 10, 2024
BATMAN, another analyst with a big following of 74k, provided a comprehensive analysis on X of Bitcoin’s price action leading up to the CPI release. He expressed optimism, anticipating a decrease in inflation data on May 15th, which could potentially trigger a bullish market turnaround. BATMAN delved into Bitcoin’s weekly, daily, and 4-hour charts, identifying key support and resistance levels.
On the weekly timeframe, BATMAN highlighted that Bitcoin price chart has managed to maintain a parabolic uptrend, staying within the trend line for the past two years. Even when many analysts predicted a drop to $50,000 last week, Bitcoin adhered to this upward trajectory.
#Bitcoin Price Action Leading Up to CPI
On May 15th, the Consumer Price Index (CPI) and Inflation data will be released. The recent unemployment, Non-Farm Payroll (NFP), and jobless claim data suggest that the labor market and economy are slowing down significantly. As a result,… pic.twitter.com/IVu6A0VOWf— BATMAN ⚡ (@CryptosBatman) May 11, 2024
Examining the daily chart, BATMAN noted that BTC is attempting a retest towards the liquidity sweep area of $56,000 to $59,000. Notably, the Stochastic and Relative Strength Index (RSI) indicators are currently in extremely oversold territory, with the Stochastic poised for a golden cross. Additionally, the RSI has reached a level where Bitcoin was trading at $38,000, suggesting potential for a rebound.
On the 4-hour chart, BATMAN identified three key price points to monitor: 1) a potential bounce from the current 4-hour fair value gap, 2) reaching the order block at $59,300, or 3) a drop as low as the $57,600 order block. According to BATMAN, any of these three scenarios would be favorable, provided the price does not fall below the sweep area of $56,500.
If all goes according to plan, BATMAN believes the price should follow one of the three outlined scenarios, with the CPI data acting as a bullish sentiment catalyst to trigger a market turnaround.
Ali, another prominent crypto analyst, weighed in on X, stating that if BTC price can reclaim $64,290 as support, it is likely to rise towards $76,610. However, if it fails to surpass $64,290, Bitcoin might retest support at $51,970.
If #Bitcoin can reclaim $64,290 as support, it is likely to rise towards $76,610. However, if it fails to surpass $64,290, $BTC might retest support at $51,970. pic.twitter.com/s4D1fTEU7k
— Ali (@ali_charts) May 12, 2024
Top Cryptocurrency To Buy Right Now
Jacob Bury, a YouTuber with nearly 40,000 followers, highlighted Slothana as one of the best cryptocurrencies to invest in. Slothana experienced a big price surge of nearly 500% from its initial bottom price, despite a brief bearish market phase.
To enhance trust and stability, Slothana locked its liquidity until November 2024 and implemented a token burn strategy, which has already seen 3 million Slothana tokens burned as the price reached $0.03. Further burns are planned at higher price milestones.
ClayBro, another crypto YouTuber with over 128,000 subscribers, recommended Slothana and two new meme coins as best cryptos to buy now: Dogeverse and WienerAI. Dogeverse is nearing the end of its pre-sale and has raised over $15 million, with compatibility across multiple blockchains. WienerAI offers the potential for passive income through staking, raising over $1.6 million in presale so far.
Conclusion
While the upcoming CPI data may create problems in the crypto market, particularly for Bitcoin price, altcoins have demonstrated resilience. Analysts and influencers have highlighted several top cryptocurrencies to buy now, including Slothana, Dogeverse, and WienerAI, as potential investment opportunities this week and beyond.
