Bitcoin (BTC) fell back to February levels on March 10, as the latest US inflation data sparked a bout of volatility.
Wheat gives Bitcoin a run for its money
Data from Cointelegraph Markets Pro and TradingView showed that the BTC/USD pair reacted strongly to the February consumer price index (CPI) reading.
Despite matching forecasts of 7.9%, The print saw Bitcoin stage a smaller version of last month’s reaction, with a break above $40,000 immediately followed by a trip to 24-hour lows.
At the time of writing, Bitcoin was trading in the same place as it had before the event.
“High inflation figures call for faster increases and potential QT, quantitative tightening, resulting in a stronger dollar and people selling their risky assets. That’s the short-term reaction.”, summarized Cointelegraph contributor Michaël van de Poppe.
“However, such high inflation is not good. Although in the long term; Bitcoin”.
Meanwhile, the start of trading on Wall Street did not produce any noticeable change in the status quo in the short term.
The S&P 500 was down 0.6% at the time of writing, while rising commodity prices (oil and wheat, among others) remained center stage.
“Wheat is everything BTC wanted to be and more”, joked the popular trader Pentoshi.
“A global reserve currency, hedge against inflation, that you can change and carry in your pocket. If you don’t go to your local store right now and go all in on Wheaties, what are you doing with your life?”
The US Federal Reserve’s decision to raise its base rate was due on March 16.
“The economy needs energy to function. Energy prices are skyrocketing and there is no relief in sight,” added that day Material Scientist, creator of the monitoring resource Material Indicators.
“Therefore, economic output (GDP) has and will continue to fall (T1 at 0%, if T2 does not grow either = official recession). Also, QT lol. The best bet in the 70’s was commodities, energy, tangible assets. Buckle up.”
Western Union stops international remittances from Russia
In another development, Money transfer service Western Union, traditionally a waiting competitor to Bitcoin, announced that it would suspend remittances to both Russia and Belarus.
“If only there was something that could replace these corporations and that was a little bit decentralized and that no one really had control over and that you didn’t have to physically carry around,” reacted the commentator WhalePanda.
However, In both the low and high timeframes, very little had changed for Bitcoin, market participants concluded.
#BTC high time frame
Rising wedge + local top $69k H&S neckline extended
is the current rangeIf SL triggered or look for an entry at key trendline range or lower.
Bears have been milked, the market wants bulls rekt too. Enter @ support, but be ready in case we go lower pic.twitter.com/1DowiRV1z3
— AN₿ESSA (@Anbessa100) March 10, 2022
BTC high period
Rising wedge + local peak $69,000, H&S extended neckline is current range
If SL has been triggered, look for an entry at or below the key trend line range.
The bears have been milked, the market also wants the bulls to renew. Enter @support, but be prepared in case we go down
Overnight, the BTC/USD pair printed another familiar move in the form of a “Bart” chart pattern, once again failing to hold the $40,000 support.
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