Bitcoin price is rising again. He drew a double bottom on the chart. So is the worst behind us?
Bitcoin price is rising, but is it permanent?
Has the BTC price correction finally come to an end? Too soon to say so. But let's look at the chart.
The 6-hour chart shows that the low in this correction is currently just over USD 56,500.
Moreover, today, as can be seen on a smaller scale, a double bottom has been achieved. The rate did not fall below $60,187.
At the time of writing, 1 BTC costs just over USD 63,100. This means an increase of 3% per day and only a 3% loss during the week. In the morning the situation looked much less favorable. No growth was recorded on a daily basis and the weekly loss was 5%.
1 ETH currently costs approximately USD 2,980. This means an increase of 2.3% in 24 h and a 6% decrease in 7 days. A few hours ago we recorded a decline of 1.4% per day and as much as 10% per week.
It is growing, but will it last for long?
So now we have a nice rebound. How long will it last? It cannot be ruled out that this is preparation for a bulltrap. The reason for my pessimism? This week we are going to learn new data from the USA. This time it is about the price index of production goods. This is an indicator showing changes in the level of prices set by producers at various stages of the goods production process. If the result turns out to be high, it will be a sign of a spike in inflation. This is very bearish news, as it will eliminate potential interest rate cuts for good. in June, and maybe in the following months.
On Wednesday, we will also know CPI inflation data in the US, and the icing on the cake may be a speech by the Fed's leadership. If inflation turns out to be high and Jerome Powell is hawkish (set on maintaining higher rates), we should not expect continued increases.
