Is Bitcoin Nearing a 90% Rise? Analyst sees bottom as inflation data in focus

bitcoin prices are moving sideways at the time of writing and are generally firm. Although there are signs of strength, the world's most valuable currency is still swimming against fierce downdrafts and could be at risk of falling below $60,000 and the May 2024 lows.

Is the bitcoin bear run over? Prices retest 100-day moving average

Although there are risks, an analyst on twitter.com/thescalpingpro/status/1789936710106640895″ target=”_blank” rel=”noopener nofollow”>optimistic. In a post, the trader noted that prices retested the 100-day moving average. Historically, every time bitcoin has fallen to this level or slightly below it, it has marked a local bottom, followed by a major bullish rally.

Looking at the daily chart, the analyst notes that the most recent case occurred in January, when a price test of the 100-day moving average preceded a 90% rise.

Now that prices have retested this level, if history guides, bitcoin has likely found a local bottom, and a bullish outcome, last seen in January 2024, could be in sight.

Although traders are hopeful, there is no guarantee that prices will rise as expected. As mentioned above, the coin remains under immense selling pressure and sellers have been immersed in attempts to reach higher highs.

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The daily chart shows that local resistance and support are at $66,000 and $56,500, respectively. As prices move sideways, the direction of the established trend will largely depend on the breakout direction.

A conclusive close above $66,000, driven by rising participation, could push btc prices higher. However, it remains to be seen whether it will increase by 90% or more as in the past.

Inflation data: a catalyst for bitcoin growth?

With traders optimistic, this week promises to be crucial, with inflation data taking center stage. On May 14, the United States Producer Price Index (PPI) will be published. One day later, on May 15, the public will know what the reading of the Consumer Price Index (CPI) is.

While economists anticipate a slight decline in inflation compared to previous readings, volatility is expected. If inflation slows in the United States, the dollar could weaken. bitcoin may subsequently rise as investors look for alternatives to store value.

In a publication, an analyst twitter.com/tedtalksmacro/status/1786552376373178570″ target=”_blank” rel=”noopener nofollow”>believe Falling oil prices and a strong labor market point to a general weakening of inflation in the United States. If this trend guides, it aligns well with the expectation of lower PPI and CPI readings this week; a net bullish for btc.

Featured image from Canva, TradingView chart