Material Indicators, a company that provides cryptocurrency market data, trading indicators and data visualization tools for investors, has commented on the possible behavior of Bitcoin based on the result of inflation data to be released in the US on May 10.
The company said in a tweet on May 9 that the 200-Week Moving Average (WMA), a technical level that indicates the long-term trend of an asset, is currently around $26115 in Bitcoin (BTC), with a massive $27 million below it. Said it was a buy order.
According to analysts, perhaps the absence of an intense buying volume above this level may be an indication that there is no sensitivity to this level yet.
The company also said that the inflation data and debt limit agreement could have a significant impact on the crypto and traditional financial markets.
The 200 Week Moving Average is a technical level that is long overdue for a retest. It currently sits around $26115, yet the $27M Notorious B.I.D. wall sits below it. Perhaps the lack of concentrated bid volume above it is an indication that there isn't sentiment for that level… https://t.co/sfyWSCqH7D pic.twitter.com/b6yzvUBd2o
— Material Indicators (@MI_Algos) May 9, 2023
If inflation figures are lower than expected and a debt ceiling agreement is reached, markets could rise, according to the company. However, according to analysts, the price of Bitcoin could fall if inflation figures are higher than expected or if the debt limit agreement fails.
US inflation data for April will be released on Wednesday, May 10, 2023, at 15.30 Turkish time.
The company added that if Bitcoin approaches 200 WMA, it expects more liquidity to come in to try to protect the price, but this is not a guarantee that it will be successful.
*Not investment advice.