As the ‘Most Hyped’ CPI Print Approaches, the Bitcoin Price Is Nearing the $19,000 Resistance Level

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Last Updated on October 13, 2022 by Bitfinsider

On October 13th, as markets readied themselves for important macro data, Bitcoin began with its classic oscillations around $19,000.

Hours before the release of the September United States Consumer Price Index (CPI), data from TradingView showed BTC/USD threatening a decline.

Source: TradingView

According to a Bloomberg survey, it was predicted that core inflation will come in at 6.5% annually, which would unnerve risk asset markets by suggesting an end to inflation’s recent decline.

The consumer price index was predicted to drop to 8.1% from the 8.3% annual growth seen in the prior period.

CEO and founder of trading firm Eight, Michal van de Poppe, recently updated his Twitter status as follows:

Source: Twitter

Historically, CPI events have been a catalyst for wild, short-term price swings in both directions, often reversing several times to snare speculative traders looking to make quick profits.

In the meantime, Material Indicators, a data resource that analyzes market composition, noticed a rise in asks from Binance whales the day after the PPI came in higher than predicted.

“Whales are suppressing price with ~$20M in asks trying to get bids filled. PPI came in hotter than expected. CPI and Jobless Reports tomorrow at 8:30am ET. Things are about to get spicy,” it concluded.

Markets are “waiting for resolution” of a narrow trading range

The largest cryptocurrency has maintained almost nonexistent volatility despite the general unpredictability of risk asset markets in the present environment.

Analysts pointed to the Bitcoin historical volatility index (BVOL) to support their claims that this indicated a period of violent change was imminent.

On that day, BVOL was at a level just under 23, which is extremely low compared to historical norms and only reached a couple of occasions in Bitcoin’s existence.

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