The U.S. Bureau of Labor Statistics released its August 2024 CPI data in a surprising move, suggesting that inflation has slowed for the fifth consecutive month. The new rate is forecast to rise to 2.6% from 2.9% in July, the lowest since February 2021. Also, the U.S. core consumer price index rose 0.3%, slightly above the expected 0.2% increase from July's 0.2% increase.
The United States will soon vote to elect a new president, and the ongoing interest rate cut is expected to have a major impact on the traditional markets as well as the cryptocurrency market. The changes may not seem significant, but in a market where key indicators are constantly under review, even small improvements are meaningful. This has led to BTC price rebounding from the weekly support level around $55,900 and attempting to rise towards the upper limit, remaining very stable.
Bitcoin price has been actively forming the upper limit of this week's candlesticks and is currently at the upper limit of $58,400, but is still far from the Bollinger Band MA. However, on the daily chart, the price is testing both the weekly resistance level and the BB MA. Moreover, the price is trying to rise above the average band of the channel and the MACD is showing a bullish crossover, indicating the beginning of a new bull run. Therefore, Bitcoin price is expected to maintain a steady upward movement until it reaches the provisional resistance near $60,000, which could pave the way to reach the upper band of the Bollinger Band at $64,000.
Also, with a few exceptions, we are not seeing any divergence among altcoins. If the Fed continues to announce positive policies, it could trigger a further 5-day rally and reduce selling pressure. Secondly, the current trading situation suggests that this could be a temporary rally before the real turmoil begins. A closer look shows that Fidelity is buying both BTC and ETH, while ARK, Grayscale and VanEck continue to sell. Therefore, market participants should remain vigilant in the coming days.
