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Bitcoin rebounds to the $70,000 level despite the rising inflation rate in the United States. What does that mean ?

attest Bitcoin BTC Price Strong fluctuations occurred over the last 24 hours, as it fell sharply to $67,400 before returning and rising sharply to the $70,000 level. These strong movements came after the publication of American inflation data for the month of March, higher than those for the month of March. Analysts' expectations.

decreases Bitcoin Price In the first hours of trading in the United States, a government report showed that the consumer price index (CPI) rose faster than analysts expected. This has prompted investors to reconsider their expectations for interest rate cuts this year.

Official data released by the U.S. Department of Labor was released Thursday. The Consumer Price Index (CPI) increased by 3.5% on an annual basis during the month of March. Exceeding market expectations, which indicated a rate of 3.4%.

The previous reading of the inflation index rose to 3.2% last February. This reflects continued inflationary pressures on the US economy.

As for underlying inflation, which excludes the prices of energy and food products, it stabilized at 3.8% at an annual rate at the end of last March, in line with the previous figure. While market expectations were for a slowdown to 3.7%.

It is... Data is positive for the US dollarAnd negative for high-risk assets such as stocks and digital currencies in general.

This reinforces expectations that restrictive monetary policy will continue for a longer period. The Federal Reserve will not lower its interest rates next June, as the financial markets had hoped.

This decline was reflected in high-risk asset classes, but Bitcoin quickly recovered all its losses. It outperformed both U.S. stocks and gold, which ended the day noticeably lower.

Bitcoin Rebound Highlights Strong Investor Demand

This rebound indicates that... Demand for Bitcoin Still going strong, even with drops. Strong demand comes from investors who view pullbacks as buying opportunities.

Some investors believe that Bitcoin It is an investment tool Good in the long run. Especially in light of the United States' high level of debt.

In this regard, digital asset hedge fund QCP Capital reported that “strong demand for long-term Bitcoin contracts, even in light of this decline,” is the main reason for this rebound. This indicates “an established structural rise in the price of Bitcoin.”

On the other hand, Will Clemente, co-founder of Reflexivity Research, argues that "higher US debt levels are more important in the long run than individual CPI numbers." Clemente believes policymakers will allow inflation to rise above the 2% target to help ease the debt burden.

“Bitcoin comes here as insurance against this scenario,” adds Clemente.

Technical analysis of Bitcoin BTC price

In general Bitcoin BTC Price Despite the fluctuations we have witnessed in recent hours. However, in the short to medium term, it is still trading in a sideways range, mainly confined between the $71,350 resistance level and the ascending trendline. And between them are the Fibonacci levels.

4-hour chart of Bitcoin BTC price
4-hour chart of Bitcoin BTC price

Unless he breaks through BTC Price Its all-time high is around $73,800, so there is no point in talking about the possibility of strong rises.

On the downside, breaking the downtrend line will open the door for a decline to the 61.8% Fibonacci level at $60,500, which is the second strongest support level on the leaderboard.

The possibility of falling below is very low at present, because as we have seen, every dip is a buying opportunity for many. However, there are still risks of liquidation transactions in the derivatives markets, which could stimulate unexpected forced sales that could send the price down to mid-fifties levels.

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