empty
12.04.2023 12:49 PM
Bitcoin volatility rises ahead of inflation data: What to expect ahead?

Bitcoin has started a new trading week with a bang and is holding the $30k level towards its equator. The price movement can be associated with investors' expectations ahead of the inflation report. Markets are confident that the downward trend will continue, which we see on the charts.

The inflation data is due out today, April 12, so the market volatility will continue to rise. The movement of BTC price towards $30k was accompanied by liquidation of short positions up to $100 million. This is a relatively small amount for the "harvesting" of large investors.

This image is no longer relevant

At the same time, the asset showed stability, and during the formation of an upward momentum, trading volumes gradually increased. This indicates a high positive in the market, probably provoked by the incoming inflation data.

What to expect from inflation?

The deflationary movement of the U.S. dollar is likely to continue, as we can see from the latest developments in the cryptocurrency market. However, if the facts prove to be much weaker or completely opposite to expectations, we should expect a strong pullback of BTC/USD quotes.

This image is no longer relevant

We should also not forget about the upcoming turmoil in the stock market. According to BBG data, the shorts in the e-mini S&P 500 futures are at their highest in the last 12 years. This suggests that the market is preparing for one of the worst reporting periods of large companies.

This image is no longer relevant

At the same time, positive inflation data may soften the pressure on the market and improve investor sentiment. BlackRock says that the Fed may leave the key rate unchanged in May. However, for the veracity of such statements, it is necessary to see the deflationary movement of the indicator in March.

Bitcoin on the wave of success

On the eve of Bitcoin's conquest of the $30k mark, positive sentiments were observed in the market. Despite the fact that the main digital asset spent the previous week in consolidation, CoinShares notes the inflow of funds into crypto funds in the amount of $57 million.

This image is no longer relevant

Santiment also notes an increase in bullish sentiment among crypto investors as BTC hits $30k. Bitcoin entered the top 4 trend words related to cryptocurrencies after the asset broke through the $30k psychological level. Cryptocurrency market sentiment is approaching a peak of euphoria, which could be dangerous for a sustained upward movement.

BTC/USD Analysis

As of writing, Bitcoin continues to trade near the $30k level on noticeably sagging trading volumes. At this stage, the $29k–$30k level is a local support zone, but this boundary will not be able to keep the asset from a sharp surge in bearish volumes.

This image is no longer relevant

The key support zone at this stage is the $28.5k level, where the asset has been consolidating for two weeks. Technical metrics of the cryptocurrency look slightly overbought: stochastic and RSI crossed the 70 mark.

This image is no longer relevant

At the same time, the stochastic oscillator shows signals for the formation of a bearish crossover. The RSI is also starting to gradually decline, but given the current trading volumes, this will not lead to a powerful downward trend in the price of BTC/USD.

This image is no longer relevant

At the same time, we should expect an impulsive reaction of Bitcoin to the publication of inflation reports. Regardless of the result, we will see a sharp price movement due to a surge in volatility. Given the achievement of BTC at $30k, as a reaction to a future event, we can expect a local pullback of asset quotes.

Results

The market froze in anticipation of the publication of inflation reports. The position of the majority is already known—a move to $30k and above, which indicates local euphoria in the market. Most likely, the downward trend in inflation will continue, but will be below expectations. Given this, we should expect a pullback in the price of BTC/USD to a key support zone near $28.5k.

Artem Petrenko,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

Technical Analysis of Intraday Price Movement of Litecoin Cryptocurrency, Thursday June 05, 2025.

On the 4-hour chart of the Litecoin cryptocurrency, there is an appearance of a Descending Broadening Wedge pattern which indicates that there will be a strengthening in the near future

Arief Makmur 09:53 2025-06-05 UTC+2

Trading Recommendations for the Cryptocurrency Market on June 5

Bitcoin is struggling to reach $106,000 less frequently and is dropping toward $104,000 more often, which is a rather concerning short-term signal. Sooner or later, this pattern could lead

Miroslaw Bawulski 09:20 2025-06-05 UTC+2

Trading Recommendations for the Cryptocurrency Market on June 4

Bitcoin and Ethereum keep trying to break through key resistance levels but continue to face the same obstacle. On one hand, this suggests a cautious approach by major market players

Miroslaw Bawulski 09:19 2025-06-04 UTC+2

The Correlation Between BTC and Global M2 Liquidity Remains High

Bitcoin still cannot firmly hold above the $106,000 level, which raises certain concerns. While other altcoins and tokens have been performing much better, at least in recent days, the fact

Jakub Novak 09:17 2025-06-04 UTC+2

BTC/USD Analysis on June 4, 2025

The wave pattern on the 4-hour chart for BTC/USD has become more complex. We observed a corrective downward structure that completed its formation around the $75,000 level. After that

Chin Zhao 09:10 2025-06-04 UTC+2

Trading Recommendations for the Cryptocurrency Market on June 3

Bitcoin and Ether surged strongly during Asian trading, although yesterday ended on a somewhat downbeat note. However, despite the rapid strengthening of these assets, Bitcoin once again failed to maintain

Miroslaw Bawulski 08:51 2025-06-03 UTC+2

Bitcoin's technical outlook appears promising

Bitcoin appears to have found a bottom near $104,000 and is currently trading around $104,500 in early June. It is evident that the cryptocurrency is positioned at a psychological

Jakub Novak 12:36 2025-06-02 UTC+2

Trading Recommendations for the Cryptocurrency Market on June 2

Despite the corrections at the end of last week, Bitcoin and Ethereum are once again showing upward momentum, although Ethereum is lagging behind. Experts from the banking group also point

Miroslaw Bawulski 09:45 2025-06-02 UTC+2

Bitcoin Forecast for June 2, 2025

Bitcoin Over the weekend, Bitcoin formed a reversal from the supports at the target level of 102,698 and the embedded green price channel line. If today's candlestick closes in white

Laurie Bailey 04:30 2025-06-02 UTC+2

Crypto investors still overwhelmed by optimism

Despite the ongoing correction, investor sentiment toward buying crypto assets remains positive, as indicated by the so-called Fear & Greed Index, which, as we noted earlier, is still

Jurij Tolin 16:24 2025-05-30 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.