Bitcoin (BTC) has managed to hold on to the $30,000 support level during the Wall Street open on 12 April, as positive macroeconomic data from the United States boosted bullish sentiments. Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hovering near $30,250 on Bitstamp. While there was a slowdown in volatility, the US Producer Price Inflation (PPI) data indicated that inflation was slowing faster than expected, as the headline PPI stood at 2.7% year-on-year, lower than the market expectations of 3%.
The Kobeissi Letter, a financial commentary resource, noted that the month-on-month drop in PPI values was the largest since the peak in March 2022. It added that the overall PPI inflation rate has fallen from 11.3% to 2.7% since June 2022, less than a year ago. Meanwhile, market commentator Tedtalksmacro suggested that the numbers would also provide a snowball effect for another key inflation metric called the Consumer Price Index (CPI), the March print for which beat prognoses. This increase in inflation could traditionally boost crypto asset performance as it raises hopes that the US economic policy will become less restrictive.
However, Material Indicators warned of a bearish signal on its proprietary trading tools, within a broader bullish context, as it showed that BTC was struggling to convince everyone that its ten-month peak would remain stable. Both Trend Precognition algos are showing red on the BTC Daily chart, which are tentative, but both algos on the same candle have historically had a high probability of accuracy.
On the other hand, the largest altcoin Ether (ETH) stole the limelight on 12 April, passing $2,000 for the first time since August last year. According to TradingView, ETH/USD 1-day candle chart (Bitstamp) remained strong, with the possibility of reaching further highs. The decision on the Federal Reserve’s next interest rate change is due in May, a key event for market participants.
In conclusion, BTC has been able to hold on to its support level of $30,000 while Ether is making headway in the market, passing $2,000 for the first time since August 2022. The US economy’s inflation rates are showing a downward trend, which traditionally has boosted the performance of crypto assets. BTC still struggles to convince everyone that its peak will remain stable, while the Federal Reserve’s next interest rate change in May is a crucial event for the market.
