Bitcoin price plunged close to 8% over the past day owing to the high Consumer Price Index report.
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The prices of most altcoins fell on their respective charts after the CPI showed a 0.1% increase in August, which has now taken the unadjusted value to 8.3%.
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The annual increase was expected to be 8.1%. Over the last 24 hours, Bitcoin registered a 4% loss.
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Given that the market is undergoing an extended sell-off, a further fall in BTC’s value could be expected. The technical outlook for the coin was bearish as buyers left the market at the time of writing.
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Bitcoin price has been struggling at $18,900 for the past month, but it has managed to break through this price level in the last week.
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Bitcoin has soared past the $22,000 level. The recent blow from the CPI report has pushed the coin downwards.
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Indicators have chosen to side with the bears given how sellers are dominating the market at press time. The global cryptocurrency market cap today is at $1.04 trillion, with a 2.5% negative change in the last 24 hours.
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Bitcoin Price Analysis: One Day Chart
Bitcoin was priced at $20,200 on the one-day chart | Source: BTCUSD on TradingView
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BTC was trading at $20,200 at the time of writing. The plunge from the $22,000 mark was sudden due to the unanticipated number from the CPI report.
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Immediate resistance for Bitcoin price was at the $21,000 mark. If BTC manages to topple this level, it can get back to trading above the $22,000 price mark.
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Local support for BTC was at $19,200. However, with the intense sell-off, the coin could fall to trade near the $18,900 support line.
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The amount of Bitcoin traded in the past session grew slightly, indicating that there was an influx of buying strength.
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Technical Analysis
Bitcoin displayed a small uptick in the number of buyers on the one-day chart | Source: BTCUSD on TradingView
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BTC has registered a sharp fall in buying strength over the last 24 hours. This fall in buyers has further pushed the price near the nearest support line.
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The Relative Strength Index was seen below the half-line, indicating strong selling strength and, therefore, bea""rishness.
Over the past few trading sessions, RSI noted a small uptick, indicating that the buying strength increased slightly.
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Bitcoin price just fell through the 20-SMA line, which was also a sign that sellers were driving the price momentum in the market.
Bitcoin registered buy signal on the one-day chart | Source: BTCUSD on TradingView
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BTC displayed buy signal despite the market registering a tiny buy signal after buying strength displayed an appreciation.
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The Awesome Oscillator depicts the overall market strength and the direction of the price. AO climbed above the half-line, indicating that buyers could act on this price action.
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Even if buyers act on the buy signal, the price of the asset would hardly notice an upward movement. The Directional Movement Index signals the price direction and momentum.
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DMI was negative as the -DI (orange) line was above the +DI (blue) line. The Average Directional Index (red) was above the 20 mark, which means that the present price direction has gathered strength.
