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Blocksmith Says: BTC Looks Up Ahead of CPI Announcement

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It’s a big data day tomorrow with the consumer price index (CPI) print at 0830 EST. Depending on the number there could be a big push up in risk or a dump. The markets are therefore skittish ahead of this. That being the case I think its best to stay close range tactical and we are going to revisit the hourly Bitcoin chart sent out yesterday.

The expectation was for a C wave down into support between US$18,500 and US$18,800. Price has actually recovered near term and the most recent low was posted at US$18,861, which is higher than expectation and implies pent up bullish energy near term.

We are within the acceptable range for a 5 day cycle low (semicircles), price has started to clear to the upside and beaten the C wave downtrend return line from 6 October (red down sloping line on chart capping the decline) and MACD momentum is pushing faster than price and a zero cross is in the offing.

Tentatively looking up for now, but will be keeping a close eye on CPI announcement, which will likely have a material impact in either direction.