Bitcoin shrugs off CPI results and reclaims the $70,000 price level

The US Consumer Price Index (CPI) climbed 3.8% on its annual basis, 10 basis points above economists’ expectations. Analysts now are uncertain about how the Federal Reserve will approach rate cuts for 2024, and this may have a direct impact on the performance of assets such as Bitcoin (BTC).

Despite a quick 2% correction after the CPI numbers came out, BTC made a sharp recovery, reclaimed the $70,000 price level, and grew 1.8% in the last 24 hours.

Moreover, Bitcoin is stuck in a tight price range for the short term, starting at its previous all-time high levels at $69,000 and ending at $71,300, according to the trader who identifies himself as Rekt Capital. This situation opens up the possibility of consolidation going forward.

In an April 9 post on X, Rekt Capital also highlighted that there’s possibly only “bargain-buying opportunity” left before Bitcoin breaks its resistance and goes into price discovery territory.

#BTC

There are only two bargain-buying opportunities left for Bitcoin before price takes-out into Price Discovery

There’s the Pre-Halving Retrace (dark blue circle)

And then there’s the Re-Accumulation phase (red)

Bitcoin has already experienced a Pre-Halving Retrace of -18%… pic.twitter.com/OBkdTyMFr8

— Rekt Capital (@rektcapital) April 8, 2024

On a more fundamental note, Darren Franceschini, co-founder of Fideum, believes that the CPI numbers above expectations make “Bitcoin’s future shine even brighter.”

“Given its limited supply and its reputation as a steadfast hedge against inflation, Bitcoin naturally stands out as a solid hedge for investors navigating the stormy seas of rising prices. And let’s not overlook the upcoming halving event. This periodic halving not only underscores Bitcoin’s scarcity but also tends to spark significant interest and speculation,” Franceschini adds.

From the Fideum co-founder’s perspective, this new macroeconomic development might amplify Bitcoin’s appeal to new investors eager for a safe haven, drawing a new wave of capital to the market

“It’s an exciting time to be part of this journey, and I’m keen to see how this blend of economics and technology unfolds to shape our financial future,” he concludes.