Bitcoin, which exceeded $ 50,000 on Monday with the rise that started last week, experienced a moderate decline after the US inflation data announced yesterday.
BTC, which fell to $ 48,300 in this decline, recovered again and rose to $ 49,000.
While Bitcoin showed impressive resistance despite inflation being above expectations, inflation above expectations reduced expectations for an early interest rate cut.
At this point, analysts evaluated its strong stance against US inflation data.
Speaking to Bloomberg, market analyst Tony Sycamore from IG Australia Pty said that Bitcoin remains strong but may experience some withdrawal in the coming days:
“Bitcoin showed impressive resilience despite the overnight deterioration in risk sentiment and did not fall much.
However, my analysis based on some technical indicators on the Bitcoin chart points to the possibility of a temporary drop to $30,000 levels.
So there is a possibility that Bitcoin will correct 10% from current levels and fall below $40,000.”
Apart from Tony Sycamore, Caroline Mauron, co-founder of Orbit Markets, also evaluated the current situation of BTC.
Stating that this strength in Bitcoin was supported by ETF approvals, stable ETF entries and the halving event in April, Mauron underlined that the halving event, which will reduce the Bitcoin supply, has historically been an important catalyst for the rise in prices.
At this point, Mauron also stated that he expects a correction in BTC before the halving and said:
“We expect Bitcoin to take a brief pause here after a spectacular four-month rally before the upcoming Bitcoin halving takes over the bullish story.”
Bitcoin continues to trade at $49,736 at the time of writing.
It is not investment advice.