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BTC price aims for $27K as Bitcoin supporters remain unfazed by unexpected PPI inflation data.
Bitcoin (BTC) rose ahead of the Wall Street opening on September 14, despite new macroeconomic data indicating a resurgence of inflation in the United States.
BTC/USD 1-hour chart. Source: TradingView
Bitcoin rises as U.S. PPI exceeds expectations
Data from Cointelegraph Markets Pro and TradingView tracked BTC’s price movements as it reached new highs for September, peaking at $26,762.
Bitcoin capitalized on the momentum observed after the previous day’s close, disregarding the implications of the U.S. inflation increase confirmed by both the Consumer Price Index (CPI) and Producer Price Index (PPI) figures for August.
The PPI registered a year-on-year increase of 1.6%, surpassing market predictions of 1.3%.
Despite this, the cryptocurrency market, along with traditional markets, dismissed the notion that U.S. macroeconomic policy might remain more restrictive for an extended period to control inflation.
As per CME Group’s FedWatch Tool, there was virtually no agreement on the Federal Reserve raising interest rates again later in the month. Conversely, the likelihood of a pause in rate hikes was at 97% at the time of writing.
Fed target rate probabilities chart. Source: CME Group
The divergence between the data and market sentiment was highlighted by the European Central Bank’s (ECB) decision to increase rates by 0.25% on the same day.
“This marks their 10th consecutive rate hike, bringing rates to 4.5%, the highest level since 2001,” noted financial commentary source The Kobeissi Letter in a response on X (formerly Twitter).
“The ECB also revised down all their growth forecasts through 2025. The battle against inflation is far from over.”
Kobeissi further mentioned that while the ECB indicated that the latest hike might be the last in the current cycle, futures markets still assigned a 30% probability to further increases.
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“Central banks globally are preparing for a prolonged pause with elevated rates,” it concluded.
BTC price forecasts exceed $27,000
In light of the current situation regarding Bitcoin, market participants expressed optimism that another upward movement could push BTC/USD to $27,000.
Related: Bitcoin price can hit $46K by 2024 halving — Interview with Filbfilb
#Bitcoin approaching the $26.4K level once more.
Breaking this level is crucial to exit the post grayscale dump range and aim for filling the gap up to approximately $27K. https://t.co/yY0tiWT58w pic.twitter.com/gkTLNKP5gB— Daan Crypto Trades (@DaanCrypto) September 14, 2023
“Bitcoin continues to demonstrate the Power of Three setup — advancing towards local resistance,” popular trader Jelle informed X subscribers as part of the day’s analysis.
“A break above $26,400 would shift my focus to $27,600 next.”
BTC/USD annotated chart. Source: Jelle/X
More cautious regarding the outlook for BTC price strength was trader and analyst Rekt Capital, who observed a potential repetition of a chart fractal from 2021 — Bitcoin’s most recent all-time high.
“Bitcoin rebounds from around $26,000. As long as $26k remains as support, Phase A-B of the fractal could be in effect,” he stated alongside illustrative charts.
“However, we have seen this fractal pattern in 2019 and 2021 as well. A relief rally followed by a rejection could indicate weakening support at $26k.”
BTC/USD annotated chart. Source: Rekt Capital/X
This article does not provide investment advice or recommendations. Every investment and trading decision carries risk, and readers should perform their own research before making any choices.
