March’s US CPI data sent shockwaves through the market with a sizzling 3.5% increase, surpassing all expectations. The news was not well-received by investors as most indices took a hit. But amidst the chaos, one digital currency stood strong. Bitcoin, after a brief dip, held its ground at an impressive $70,000. It seems the accumulation phase for $BTC is far from over.
Inflation Hedge?
Bitcoin has often been talked about as an inflation hedge, but thus far this has generally not held. However, things have changed in this bitcoin bull market. Traditional markets are now in bitcoin, and if institutions perceive that bitcoin is indeed that hedge, the self-fulfilling prophecy can come to pass.
Inflation Is Stealing Wealth
Amidst all the talk, a soaring Consumer Price Index does not create a fertile ground for asset growth and spells trouble for potential interest rate reductions. The Fed’s goal of 2% inflation seems increasingly distant, leaving us to wonder if interest rates will remain elevated for an extended period.
The Fed’s tightrope walk has become increasingly challenging. With inflation creeping up and the economy teetering on the edge of recession, they must carefully balance their decisions. It’s a delicate dance between taming the beast of inflation and preventing a catastrophic economic downturn.
Have you ever stopped to wonder why we are forced to accept a constant 2% inflation rate, slowly draining away our generational wealth? And if it surpasses 2%, we are heading towards an inevitable collapse. But there is a glimmer of hope in the form of Bitcoin – the life-saving vessel that can rescue you from drowning in this corrupt system.
Positive $BTC Short Term Price Action
The latest price action for $BTC has us on the edge of our seats as it breaks through the triangle and trend line, solidifying its position above the crucial $69,000 base. With the highly anticipated halving just 8 days away, all eyes are on the mining supply which is set to decrease from 900 BTC per day to a mere 450 BTC per day.
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Bullish Scenarios
$BTC surgeing in this bullish market, propelling it to a new all-time high and paving the way for even more gains in uncharted territory. But even in a sideways market, the potential for growth remains strong, as it creates a solid foundation for an inevitable upward surge.
The market dips down to a tantalizing $60,000. But don’t worry, this could actually be a good thing. As we’ve seen in the past, major corrections often pave the way for stronger bull markets. However, if the price plummets below $59,000 and stays there, it may be time to reassess the current bullish trend.
The highly anticipated $71,300 resistance is within reach for $BTC as it continues to surge. Will it break through and pave the way for a climb to $72,800 and possibly even reach its all-time high of $73,800? However, if it fails to surpass the $72,800 mark, we could see a lower high and a period of sideways movement in the market.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.