The recent release of CPI figures indicates a slowdown in inflation, leading to speculation of a potential rate cut. This development has weakened the dollar and consequently boosted the value of assets priced in dollars, such as BTC/USD. As a result, the price of Bitcoin has surged to a May high.
There is sustained demand in the market driven by institutional participants investing in Bitcoin ETFs. Reports have shown significant investments from traditional banks like JP Morgan, Wells Fargo, BNP Paribas, and BNY Mellon. This trend reflects a broader industry shift towards cryptocurrencies.
A technical analysis of the BTC/USD chart reveals interesting patterns. Since last November, the Bitcoin price has been forming an expanding fan, resembling what Jesse Livermore described as an Accumulation Cylinder, which is a bullish sign. The price also broke above a two-curve formation, indicating a 2-month correction within an upward trend. Additionally, the price reached the fan’s median line, suggesting a potential short-term flat with low intensity fluctuations around the median.
If institutional investments remain strong and the possibility of rate cuts becomes more realistic, bulls may push the Bitcoin price towards the H1 line. This could signal a path towards a new historical peak around $100k per coin. The current market conditions and institutional support indicate a positive outlook for Bitcoin’s future performance.
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