The price of bitcoin (BTC) attempted to reclaim the $40,000 mark as support on April 12, after a worrying start to the week saw the BTC/USD pair hit three-week lows.
The CPI data is “extraordinarily high”
Data from Cointelegraph Markets Pro and TradingView showed that The largest cryptocurrency bounced as high as $40,200 on Bitstamp on Tuesday, after falling as low as $39,300.
Spurred on by a bloodletting in tech stocks in particular, bitcoin looked decidedly unappetizing in the short term, and those previously betting on continuation to the upside were left empty-handed.
According to the on-chain monitoring resource Coinglass, the last 24 hours cost crypto traders a total of $428 million in liquidated long positions, the most in one day since Jan. 22.
“This flip in technology is affecting BTC as well,” Blockware Principal Insights Analyst William Clemente wrote.in a twitter thread about the current weather.
“Whether you agree or not, the market appears to be viewing BTC as a high beta game on tech, trading with increasing correlation in the last month.”
The comments echoed those of former BitMEX CEO Arthur Hayes, who on Monday had forecast the BTC/USD pair to fall as low as $30,000. as a result of macro settings.
The latest consumer price index (CPI), to be published later, will contribute to worsening the situation of the US economy and the sentiment associated with it. The March redout, which is already at the highest level in the last 40 years, could reinforce inflationary pressure, since it is the first CPI data to be published since the start of the war between Russia and Ukraine.
The White House now warning of “extraordinarily elevated” inflation data.
This upcoming March CPI print is likely going to be extremely ugly.
— Dylan LeClair (@DylanLeClair_) April 11, 2022
The White House is now warning of “extraordinarily high” inflation figures. This next CPI print for March is probably going to be extremely ugly.
IPC events have historically tended to induce short-term volatility in cryptocurrency markets, making Tuesday’s release time, 8:30 a.m. Eastern Time, be of particular importance to traders.
Therefore, some were considering the odds that the downward pressure will ease once the data is released.
Whalemap stated that the $27,000 level is the point of “maximum pain”
Analyzing support levels where high-volume investors had bought BTC, the on-chain analytics platform Whalemap declared $27,000 as the “maximum pain” point for the market.
“$41,600 sadly didn’t hold. $38,400 level is the closest new support on-chain”, summarized On twitter.
Nevertheless, an accompanying chart showing whale positions showed that the $41,600 level “should have held” thanks to buyer interest.
As Cointelegraph reported, some whales have been buying below $45,000.
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