The Bitcoin price records a drop of approximately 1.85% over the past 24 hours as the bearish sentiment once again looms over the crypto space as the U.S. Producer Price Index (PPI) data rose to 2.6%. With this, the largest token is currently exchanging hands at $107,249.8 with a trading volume of $52.034 billion.
In addition, the altcoin market follows in the footsteps and records a similar price action. Notably, an increase in the U.S. PPI data indicates increasing inflation, suggesting a high possibility of a Fed rate pause.
However, as per the data from CME FedWatch tool, we may witness about three rate cuts of the five remaining meetings this year. This suggests a strong long-term bullish action in the crypto market as the Federal Reserve’s dovish stance historically pushes Bitcoin up with altcoins following the lead.
Let us now understand how the current market sentiments could impact the Bitcoin price for this week!
Bitcoin Price Forms Bearish Action
The Volume indicator shows lower volumes, suggesting weak price action for the crypto token. This indicator plays a vital role while analysing the price prediction of a project as it accurately shows the trading volume which can be used to determine the possibility of a breakout, breakdown, or a trend action.
The Bear Bull Power (BBP) after its recent price surge showed a fading green histogram and has turned negative recently. It signals an increasing bearish influence in the market for the token.
The Fibonacci retracement for this chart has been drawn between $101,556 as its low and $110,268 as its high. Considering the chart, the key levels for a potential reversal are 0.236, 0.382, 0.50, 0.618, and 0.786, respectively. The key watch zone is 0.382 as it is the moderate support zone during a pullback situation.
Will BTC Price Rise Back Up?
If a bullish reversal occurs, the Bitcoin token could retest its 0.236 ($108,206) level. A sustained positive action could result in it heading toward its upper price range of $110,260 in the upcoming time.
However, a negative price sentiment could result in it retesting its lower support levels. A breakdown could lead the Bitcoin price toward its 0.5 level ($105,908) or 0.618 ($104,818) respectively in the upcoming time.
Also Read: Ethereum Tops Bitcoin in Another Metric: Derivatives Volume Hits $114B
