The market of cryptocurrencies He seems to have come out of his lethargy. Bitcoin(BTC) rises 1.1% in the last 24 hours and is trading at US$26,455.63, after having renewed maximums of the month on Thursday. While, Ethereum (ETH) is around US$1,621.56, above its support zone
Inflation in the US corresponding to the month of August he gave one of lime and one of sand for the market. The bad news is that year-on-year inflation rises 3.7% one tenth more than expected and a higher figure compared to the previous 3.2%, which breaks with the slowdown in the rise of prices shown in recent months.
It is a key piece of information that will be in the hands of the US Federal Reserve (Fed) facing his next meeting where he will define what he will do with the interest rate. Although it is the second consecutive month of rebound in annual inflation, prices at cYear-on-year consumption has fallen from a peak of 9.1% June 2022. The Federal Reserve has a 2% inflation target.
In this context, different analysts consider that the bitcoin is in full transition towards tangible reality, where external factors such as inflation and other indicators will have an impact comparable to that experienced by the traditional financial market, closely linked to the index S&P 500.
It should be remembered that Bitcoin experienced a drop of 13% in just a few hours a few days agogenerating panic among the most cautious investors, who chose to get rid of this asset that has exceptional qualities as a store of value.
According to the data provided on the website of Microstrategywhen comparing the performance of the leading cryptocurrency with other assets, it is observed that the Dow Jones had a fall of -16%, the Nasdaq of -15%, the S&P 500 of -16%, and gold of -7%, among others. That is, all major assets and indices underperformed the Bitcoin.
So, taking into account that next year will be the Halving of Bitcoin and that thanks to this it has experienced a certain upward trend, when observing its long-term performance, for example, over a period of 10 years, the comparison with the main indices of Wall Street and other assets considered refuge throws:the S&P 500 will grow 281%; the Nasdaq 540%, gold 16%, while Bitcoin would exceed a return of 60,000%.
Bitcoin: what can happen to the price
Examining the technical landscape of Bitcoin A moderately bullish sentiment is observed. Currently, BTC is trading just above the $26,000 resistance level, holding steady near the $26,000 double-top resistance. US$26,500, which now serves as support.
Should BTC increase in value and successfully overcome this barrier, it could aim for the milestone of US$27,000. Beyond that, the $27,600 emerges as a significant obstacle. Overcome the threshold of u$S27,600 could push BTC towards resistance u$S28,000 or even more.
Accordingly, investors should closely monitor the brand of US$26,500, since it is prepared to be a crucial point; prices above may indicate buying potential, while those below could signal selling opportunities.
Source: Ambito
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