Market cryptocurrency and stocks are in the red after the US released surprise inflation data on September 13, showing inflation rising 0.1% month-on-month.
Even with gasoline prices falling to multi-month lows and housing market cooling, core inflation is still up 0.6% month-on-month and year-over-year inflation stands at 8.3%.
This chart from @TheTerminal shows why this #CPI number is so disappointing. The contribution of energy has declined, as expected; but services inflation is now rising sharply. Not what the #FOMC will have wanted to see. pic.twitter.com/BsfwFsuyD5September 13, 2022
“The chart from TheTerminal shows why this CPI number is so disappointing. The contribution of energy has decreased, as expected; but service inflation is currently increasing sharply. Not what the FOMC wants to see.”
While market participants and investors have estimated the next rate hike by the US Federal Reserve (Fed) at 0.75 basis points (bps), many are also predicting that the September 13's CPI report will be softer than expected.
However, it is clear that the opposite happened.
The Dow fell about 2.6%, while the S&P 500 and Nasdaq fell 2.9% and 3.6%, respectively. Of course, risky assets are not immune to tragedy BTC down 9% to $20,350 at the moment, losing more than 50% the gains it made at the end of recent week. Only 1 day left for The Merge event, price ETH also dropped 7,29% to $1,590, and the majority of top 100 cryptocurrencies are currently experiencing single- to double-digit losses.
While the weekend rally of BTC The September 9 stretch to the beginning of this week pushed the price to $22,800, previous analysis warning that it is also trading near a key resistance level.
As seen below, the multi-month resistance from the all-time high (ATH) of BTC was left unchanged as the price dropped to $22,400 at the market open and the monthly CPI data is out in the media. The analysis also highlights the continuing “Bear Flag” trend since peaking at $69,000 on November 10, 2021.
Without The Mergen event, the trend of Bitcoin There is still the possibility of a price drop.
One positive to note is that despite the September 13 correction, BTC continues to fall within the 90-day range (pink box) of $17,600 – $25,400. From a vantage point, there is nothing “to watch here” until a break below $18,500 or the yearly low at $17,600.