Bitcoin eyes $90k ahead of CPI: Check the forecast
Key receivers
BTC rose less than 1% and traded above $87k.
The market is gearing up for the CPI data release in a few hours.
Bitcoin trading is over $87K.
The cryptocurrency market has seen many coins and tokens trading in the red since the beginning of the week. Bitcoin is trading at $87k after missing the psychological level of $90k earlier this week.
The bearish performance comes ahead of the release of CPI data in the United States later today. US inflation data in November, expected to show a 3.1% increase in CPI, could influence the Federal Reserve's interest rate decisions.
With the October CPI unavailable due to the government shutdown, the November CPI will give investors a fresh look at inflation.
Some analysts are hopeful that Bitcoin may get a temporary reprieve in the near future. Nick Forster, founder of the onchain options platform, Derive.xyz;
“BTC's position remains bullish. 30-day BTC volatility has risen to 45%, while skew is hovering around -5%. Longer-term skew is also hovering around -5%, indicating traders will continue to increase price and risk downside through Q1 and Q2.”
The analyst added that BTC's chance of reaching $100,000 is around 30%, while the chance of regaining all-time highs remains around 10%.
BTC may risk a deep correction
The BTC/USD 4-hour chart is weak and bearish as Bitcoin has underperformed over the past few days. The bullish performance comes after Bitcoin price experienced a rejection from its downtrend line on Friday and has lost 7% of its value since then.
The leading cryptocurrency retested the 85k support level on Wednesday but bounced back and is now trading above $87k per coin.
If the correction continues and Bitcoin closes the daily candle below the $85,569 support, Bitcoin may extend its decline towards the psychological $80,000 level.
The Relative Strength Index (RSI) on the daily chart is at 41, below the neutral level of 50, indicating bearish momentum. Moreover, the moving average converging divergence (MACD) lines are also in the bearish range.
However, if BTC recovers and closes above $85,569, it may extend the rally to the resistance level at $94,253.
