Bitcoin (BTC/USD) has risen above critical resistance after the US CPI print boosted demand for speculative assets.

With inflationary pressures on the rise, next week’s FOMC meeting minutes (22 September) could be a make or break for digital assets if the Federal Reserve hints at near-term tapering.

However, with softer CPI’s pushing out expectations of tapering, Bitcoin and Ethereum have managed to hold on to recent gains, at least for now.

Image Source: Pexels

Bitcoin (BTC/USD) Price Action

After the formation of a golden cross on the daily chart, Bitcoin prices have risen above the 23.6% Fibonacci retracement level of the June – September move at $47,000, in an effort to reclaim the key psychological level of $50,000 mark which remains as critical resistance for both the short and longer-term move.

With price action currently encapsulated between prominent levels, the ability to break above the key psychological level of $48,000 may give rise to further bullish momentum and a possible retest of $50,000 and a probable drive towards the next key Fibonacci resistance level of $51,734.

Bitcoin (BTC/USD) Daily Chart

(Click on image to enlarge)

Chart prepared by Tammy Da Costa using TradingView