The week has been hot, as have been all the other weeks this year 2023. This week particularly had investors on their toes, anticipating the CPI data that came out on April 12, 2023.
Well, the CPI data came out lower than the market expected and Bitcoin in turn took off, breaking $30,000. A lower CPI shows that the inflation rate is going down. What will Bitcoin pull off next week? Let’s consult the charts.
Previous Bitcoin Analysis
Last week, Bitcoin continued to trend in a tight range leaving no clues as to whether it was going to go up or down. Despite this uncertainty, bulls remained relatively optimistic since the asset remained above the 200-day and 50-day moving averages. Furthermore, the asset was trading well above the Golden Cross that had formed a few weeks prior.
All Bitcoin needed was some bit of good news to push it out of the consolidation zone. It is also worth mentioning that consolidation contributed to the formation of a bullish flag, which further incited more hopium among Bitcoin bulls.
Bitcoin received some good news with the CPI data and took off on a massive candle. The asset finally broke above the $28,000 barrier which had become quite a stubborn resistance in the past couple of weeks.
Bitcoin Price Next Week
Now that Bitcoin has broken the 28k resistance, the rise won’t be complete before it touches $31,840. Therefore, there is still some room to move. After that, it is decision time again. Will BTC retrace or will the bulls provide enough power to smash through that resistance and make for the $34,000 mark? That remains to be seen next week.
While some are rejoicing that the bull market is back, a long-overlooked Black Swan event written about in these analyses will still happen. The fact that it has not happened only means smart money is delaying the inevitable.
It is pretty difficult to predict where Bitcoin will go, even if the chart says ‘up’ mainly because times are different. In an age where your typical ‘breaking news’ comprises of war threats between China/Russia and the U.S.A, it is wise to make very conservative predictions or remain on the sidelines altogether.
Black Swan Catalyst in the Coming Months
The United States economy is in shambles, and the dollar is barely holding on to its status as a reserve currency.
Rumors have it that the famous pseudonymous creator of Bitcoin, Satoshi Nakamoto, is actually the name of a group of four individuals, who are well-known and in bed with the U.S. government.
If this is the case and their identity is exposed (confirmed) to and by the public, Bitcoin could receive a huge blow to its decentralized status.
DISCLAIMER: The work included in this article is based on current events, technical charts, company news releases, and the author’s opinions. It may contain errors, and you shouldn’t make any investment decisions based solely on what you read here.