Tuesday, 19 October 2021 01:01 GMT

Bitcoin (BTC/USD) Forecast: Bitcoin Extends Gains Post-US CPI


(MENAFN- DailyFX) Bitcoin (BTC/USD), Litecoin (LTC/USD) Talking Points:

  • Bitcoin prices reclaim $46,000 after US CPI (Consumer Price Index) eases expectations of near-term tapering
  • USD dips, supporting demand for major cryptocurrency
  • Litecoin (LTC /USD ) retreats back into a well-defined range as 'Walmart hoax' unfolds


Bitcoin (BTC /USD) has rebounded back above the key psychological level of $46,000 after bears failed to push prices below critical support.

With softer US CPI data now being priced into markets, expectations of near-term tapering has temporarily eased, boosting demand for the two largest cryptocurrencies (in terms of market cap), Bitcoin and Ethereum .

Visit DailyFX Education to discover the importance of macro-fundamentals in global markets

Although many alt-coins have remained relatively flat, Litecoin (LTC/USD) currently remains under pressure after it was confirmed that the announcement of a partnership agreement between Walmart and Litecoin was in fact fake news.

The steep rally came to a rapid halt forcing bulls to give back the 30% gains achieved as a result of the 'deal'.



Litecoin (LTC/USD) Hourly Chart

Chart prepared by Tammy Da Costa using TradingView

Bitcoin (BTC/USD) Price Action

Bitcoin prices have recovered from last week's correction, reclaiming the key psychological level of $46,000. After falling below $44,000, failure to break the 38.2% Fibonacci level of the June – September move at $43,500, provided bulls the opportunity to drive prices back towards the near-term resistance, currently holding at $47,081 (the 23.6% retracement of the above-mentioned move).

Meanwhile, the moving average convergence/divergence (MACD) remains above the zero-line, at least for now.

With price action currently encapsulated between prominent levels, the ability to break above the key psychological level of $47,000 may give rise to further bullish momentum and a possible retest of $50,000.

Bitcoin (BTC/USD) Daily Chart

Chart prepared by Tammy Da Costa usingTradingView

--- Written by Tammy Da Costa, Analyst for DailyFX.com

Contact and follow Tammy on Twitter: @Tams707

MENAFN14092021000076011015ID1102798781


Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.