Will U.S. CPI Ignite a Rally for Bitcoin, Ethereum?

investing.com:

Bitcoin has been stuck in a sideways movement since late June. Sellers have been exerting pressure around the $31,000 mark, but buyers have consistently stepped in around $30,000, showing resilience thus far.

Bitcoin's price has been fluctuating between $30,000 and $31,000, with occasional attempts to move higher but ultimately falling back to the $29,700 range. However, a partial recovery towards the end of last week helped Bitcoin maintain its position around $30,000.

In terms of trading volumes, Bitcoin started the week positioned between two significant exponential moving average (EMA) values. The 21-EMA, currently at $29,800, serves as a crucial support level and coincides with the lower boundary of the resistance area. A breach below this value may indicate a downside breakout in the Bitcoin price.

For potential pullbacks, one important level to monitor is the long-term uptrend line at $28,900, which aligns with the 0.382 Fibonacci retracement level. A decline to this point could be considered a healthy correction before the trend continues. Another intermediate support level is around $28,000; watch out for daily closes below $28,900. Further decline may bring the support zone of $26,000 — $27,000 back into focus.

Regarding resistance, the closest level to watch is the 8-EMA at $30,300. During the past week, Bitcoin struggled to surpass this average, accompanied by low-volume transactions. To strengthen the upward trend, it would be significant for Bitcoin to stay above $30,500 after hourly closes on this resistance until mid-week. If successful, Bitcoin could target the recent peak at $31,500 and potentially move towards the range of $32,000 — $34,000 based on daily candle formation above that level.

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