3 - 5 minute read
Bitcoin has managed to preserve the $30,000 support amidst a slowdown in volatility, thanks to the positive macroeconomic data from the US. The Producer Price Inflation (PPI) values came in at 2.7% YoY against market expectations of 3%. This data indicates that inflation is slowing faster than expected, which is a positive sign for risk assets. Ethereum has also been making headlines as it managed to surpass the $2,000 mark for the first time since August 2022.
While Bitcoin has managed to hold on to the $30,000 support, it failed to convince everyone that its ten-month peak would stay. The Material Indicators monitoring resource cited a bearish signal on its proprietary trading tools amidst a broader bullish context. The snapshot of buy and sell levels on the Binance order book revealed the strongest resistance parked at $30,500.
On the other hand, Ethereum is stealing the limelight as it crosses the $2,000 mark. An increase in staking withdrawals following the recent Shapella upgrade has triggered a renewed interest in Ethereum, leading to a surge in its price. “Near range bid liquidity may limit the downside volatility, but this is the #WildWest of #Crypto so anything goes. Watch for rugs.”
The data from PPI is an encouraging sign for risk assets as it indicates a subsiding inflation rate, which could lead to less-restrictive US economic policies. Such positive macroeconomic data often leads to buoyed cryptoasset performances.
The recent surge in Ethereum’s price could provide an opportunity for traders to invest in the altcoin as it continues to surpass key resistance levels.
US March PPI fell 0.5% MoM, below estimate of 0%, in another sign that US #inflation may have peaked. pic.twitter.com/mfI7ab03ev— Holger Zschaepitz (@Schuldensuehner) April 13, 2023
The Bottom Line
While Bitcoin has managed to hold on to the $30,000 support amidst positive macroeconomic data, the recent bearish signals indicate a possibility of limited downside volatility. On the other hand, the renewed interest in Ethereum triggered by staking withdrawals has led to a surge in its price, providing an opportunity for traders to invest in the altcoin. Traders should carefully monitor the market and watch for any potential risks or opportunities.
Both Trend Precognition algos are showing red on the BTC Daily chart. Signals are tentative, but both algos on the same candle has historically had a high probability of accuracy so these are the signals I'll often act early on. Of course PPI coming at 8:30am might make things… pic.twitter.com/rKguVIeS5d— Material Indicators (@MI_Algos) April 13, 2023