Bitcoin (BTC) saw a brief boost on April 12 after the United States saw the highest Consumer Price Index (CPI) data since 1981.
Analyst: Inflation echoes “mythical stories”
Data from Cointelegraph Markets Pro and TradingView showed that the BTC/USD pair skyrocketed $400 instantly on the data release.
The US CPI rose 8.5% year-on-year and 1.2% in March alone, according to the United States Bureau of Labor Statistics.
The results showed inflationary pressures active throughout the economy and implied that the Federal Reserve had a lot of ground to make up.. Criticism of the Federal Reserve followed one another, even by traditional economists like Steve Hanke.
“US CPI stood at 8.5%, which means inflation is probably already in double digits”, answered Gabor Gurbacs, Director of Digital Asset Strategy at VanEck.
“A few years ago these kinds of numbers were mythical stories associated with Venezuela, Argentina, Zimbabwe and Weimar. Central banks have failed. It’s time for the ₿ plan.”
The bitcoin reaction was in line with the correlated stock markets, the S&P 500 also gained 1% at the open and Asian markets rebounded from earlier losses.
“Inflation is worse than you think, and bitcoin is better than you know,” commented MicroStategy CEO Michael Saylor echoing Gurbacs.
Will the RSI give bullish results again?
In the meantime, On-chain signals gave some analysts hope on the day, despite the BTC/USD pair losing support at $40,000 overnight.
The main one was the relative strength index (RSI) of bitcoin, which is now seen as a possible pretext for a change in trend.
The RSI printed a pattern that returned to a reading of 35 this week, which is historically bullish, noted the popular Twitter account BTCfuel.
#BITCOIN MEGAPUMP SOON
When looking at the RSI, the 2022 Bitcoin correction is very similar to the 2021. Strong BULLISH move imminent pic.twitter.com/blmLVCxVRc
— BTCfuel (@BTCfuel) April 12, 2022
A BITCOIN MEGA RISE WILL HAPPEN SOON. Looking at the RSI, the 2022 Bitcoin correction is very similar to 2021. Strong UP move imminent.
As Cointelegraph reported, BTC price predictions included a downward trend until it hit $30,000 in June, a result of the macro outlook.
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