U.S. Inflation Data Puts Pressure on Crypto Market
- Inflation Data Surprises: The January Producer Price Index (PPI) in the U.S. rose 0.5% month-over-month, exceeding the 0.3% forecast, indicating persistent inflation pressures that may lead the Federal Reserve to maintain high interest rates for a longer duration, impacting market liquidity.
- Crypto Market Reaction: Following the data release, Bitcoin slipped to around $66,000, declining approximately 2% to 3%, while Ethereum and major altcoins mirrored this downturn, reflecting a broader weakness in risk assets.
- Service Prices Drive Inflation: Final demand services prices surged 0.8%, marking the largest increase since July, with trade services margins soaring 2.5%, highlighting increased inflationary pressures in the services sector and raising concerns about short-term rate cuts.
- Market Expectation Shift: Due to the inflation data's impact, markets have reduced expectations for interest rate cuts in early 2026, pushing real yields and the U.S. dollar higher, which typically weighs on risk assets, including cryptocurrencies.
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Technical Analysis for BTC
Technical Sentiment Analysis for Bitcoin (BTC). As of , Bitcoin (BTC) is exhibiting a Sell technical sentiment. Our proprietary analysis, which aggregates 4 technical signals, shows that 1 indicators are flashing buy, while 3 are indicating sell.
Momentum Indicators: RSI, MACD & Overbought/Oversold Status. Currently, the Relative Strength Index (RSI) for BTC stands at -, which suggests a Neutral condition. Meanwhile, the MACD (12, 26) indicator is at -, providing a Neutral signal for short-term momentum. Other oscillators like the Stochastic Oscillator at - and the Commodity Channel Index (CCI) at - further confirm a - outlook for the crypto.
Support, Resistance & Moving Averages. From a structural perspective, BTC is trading below its 60-day moving average of $- and below its 200-day long-term moving average of $-. Key price levels to watch include the immediate resistance at $- and strong support at $-. A break above $- could signal a bull continuation, while falling below $- may test the next Fibonacci floor at $-.
Bitcoin (BTC) Support & Resistance Level
| Name | S3 | S2 | S1 | Pivot Points | R1 | R2 | R3 |
|---|---|---|---|---|---|---|---|
| Classic | 55289.653 | 58899.967 | 62768.203 | 66378.517 | 70246.753 | 73857.067 | 77725.303 |
| Fibonacci | 58899.967 | 61756.773 | 63521.711 | 66378.517 | 69235.323 | 71000.261 | 73857.067 |
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