- The US Inflation figure is now back at 2021 levels and Interest rate drops poised for next week.
- Bitcoin reclaims its current range, mapping out what could come next.
- Altcoins analysis: SOL and AAVE.
Bitcoin kicked off the week strong with a four-day rally starting on Sunday, though it faced a surge in volatility overnight.
The latest Consumer Price Index (CPI) data was released, causing Bitcoin to drop nearly 2% within two hours. However, prices quickly rebounded, rallying 4.5%, with Bitcoin now trading at $58,300 USD.
US Inflation Returns to 2021 Levels
US inflation metrics landed as expected, with the forecast of year-on-year inflation dropping from 2.9% to 2.5%, standing on track for the Fed’s 2% target rate.
Inflation in the US has now hit measurements not seen since April 2021.
More Impactful Data Will Land Next Week
We lead into a major news week in the US, with the next interest rate decision to be released on Thursday 12th at 4 am AEST. The current forecast is set for a 0.25% drop, which would land a new funding rate of 5.25%.
If successful, this will be the first-rate drop in over four years. Futures markets are also expecting the possibility of a 0.5%-0.75% decrease.
Fear and greed currently reads 34.
My Personal Take
September has been seasonally known to finish in the red. It will be very interesting to see how the market takes the news next week heading into Q4, which has been a trending environment in the past during a halving year.
I’m expecting volatility both ways, but we have started to show some decent signs of accumulation on many alts recently.
Related: Aussie Analyst Reveals What Traders Should Do This Bitcoin Cycle
Bitcoin – BTC
In the last week, we have successfully seen the current range we have been tracking be breached on the lows and reclaimed. This now poises the market for the next critical decision.
Bullish Scenario
Having seen buyers step in at these recent range lows, the bulls need to push further to solidify their presence. Closing above $57,906 USD will create a new higher high.
Bearish Scenario
If bulls remain squeamish for the remainder of September, we could still see current momentum fade into the week, especially as prices move back towards previous highs and the middle of this current range at $59,000 USD.
Related: Bitcoin Mining Difficulty Reaches New All-time High, Will Price Follow?
Solana – SOL
Solana is still in the early stages of showing trend reversal on the lower time frames. Zooming in we can start to build a framework using Fibonacci analysis and the 200 period moving average (blue line).
Bullish Scenario
Getting back above the green zone, and reclaiming the golden fib of $146.14 would be a bullish sign. I could then start to target higher levels once we see that confidence from the bulls.
Bearish Scenario
Failure to get above the golden fib, would be a sign of weakness for me, and I would look to target previous lows.
Aave – AAVE
This is a good example of a chart that is a bit more mature in terms of price action, in my opinion. As we can see it has clearly bounced off the golden fib level that I regularly mention, and moved to a higher target.
Bullish Scenario
Continuing to trend higher towards the next Fibonacci extension targets of $176.34 and $205.12.
Bearish Scenario
Failure to continue from this point, and moving back towards a previous level to find support from buyers, or result in a further sell-off. Next key level below is around $135.92.
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The post On the Radar – Coins to Watch 12/09 appeared first on Crypto News Australia.
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