WATCH BEFORE TOMORROW (CPI Data)!! Bitcoin News Today & Bitcoin Price Prediction after Bitcoin Crash
First of all, starting off on the daily bitcoin chart and as i mentioned in the intro of this video, the bitcoin price has obviously seen a bounce from that range of support. Coming in at around 29 000 to 30 000 per bitcoin as ive been talking about. For a while now on the channel, and of course, this range of support is very important for bitcoin, because this was the range of support that held up the bitcoin price, pretty much the entire last year and if youre looking at the daily bitcoin rsi. As i mentioned yesterday, we were entering into oversold territories on the daily time frame, which i mentioned yesterday its a bit of a signal telling us that we could be due for a bit of a bounce here in the shorter term because thats what we normally see When the daily bitcoin rsi enters into oversold territories, we normally see at least some sort of shorter term bounce in the bitcoin price. But it is important to mention that we have not confirmed a full bullish reversal or anything like that, at least just yet because over here on the three day, bitcoin chart technically speaking, the price target for this bear flag. Pattern is still in play and that is coming in at around 25 000 per bitcoin. Now, as always, it is important to mention that, just because we have a technical price target at 25 000 that does not guarantee 100 percent that the bitcoin price is going exactly to that price.
But if the bitcoin price does make its way down to whats that mid 20 000 range then personally ill be buying a lot of bitcoin in that range, because not only is 25k the technical price target for this bear flag. It is also right in the middle of these two important moving averages: the 1 000 day, simple moving average and the 200 week simple moving average and when youre zooming out on the weekly bitcoin charts, taking a look at these same indicators. What we can see is, historically speaking, the best possible buying opportunities for bitcoin occur when the bitcoin price is in between these two moving averages. Now, obviously, that is not financial advice, im just simply telling you what has happened time and time again throughout many years worth of bitcoins history. So if it simply happens again, basically, if bitcoin drops below the 1000 day, simple moving average, which is currently coming in at around 28 000 approximately if we go below that price, then technically would be entering into this massive accumulation range where we almost always see the Best possible bitcoin buying opportunities according to history, once again, not financial advice and, while were on the weekly time frame, you can see that the weekly bitcoin rsi is getting very close to oversold territories, but were not there just yet and keep in mind the weekly bitcoin Rsi has only ever entered oversold territories just two other times throughout bitcoins entire history.
That is right once during early 2015. At the end of that 2014 bear market and the second time was at the end of the 2018 bear markets and obviously, both of those time periods. We saw the bitcoin price come in between these two important moving averages, giving us an amazing buying opportunity as the weekly bitcoin rsi entered into oversold territories. But this other time when the bitcoin price came in between these moving averages, we did not see the weekly bitcoin rsi entered into oversold territories back in march 2020, simply because of how quickly the bitcoin price dumped and recovered. But when youre zooming into the three day, bitcoin chart what we can see in the three day, bitcoin rsi is actually we did enter into oversold territories just yesterday and we also just got a three day candle close, which actually confirmed the fact that the three day Bitcoin rsi entered into oversold territories and we did see the rsi on the three day timeframe briefly brushed past oversold territories back in january when the bitcoin price bottoms out for those next few months. But if youre looking at the last time, the three day, bitcoin rsi, properly entered into oversold territories. That was back during that march 2020 crash and obviously in hindsight, that turned out to be an amazing buying opportunity and going back to the time before that, with the three day bitcoin rsi entered into oversold territories. That was back at the end of the 2018.
Bear markets but zooming into that time period at the end of the 2018 bear market. You can see that the moments the three day bitcoin rsi entered into oversold territories. That was right around here when the bitcoin price was close to its bottom, but we didnt actually bottom out at that stage right then, we still had one more dump to the downside, which actually forms a bullish divergence in the three day, bitcoin rsi, so keep that In mind, even though the rsi is oversold on the three day timeframe, we could still have one more dump to the downside, for example, which might end up forming something like a bullish divergence. And then we might bottom out for the bitcoin price and as for a possible bullish reversal honestly, i wouldnt even be thinking about a bullish reversal as of right now, until we start to see signals like a bullish. Divergence on the three day, charts, for example, or the rsi finally breaking above this line of resistance, which is still a fair way off at the time of recording this video or if we have external market signals like the fed. Having a? U turn, then, that could also trigger a possible bullish reversal later on which ill be talking about in just a moment, but just by going off the bitcoin chart. Its very likely well continue to hold above that 29 to 30 000 level of support in the shorter term, at least so, for example, talking about the next few hours and days, its very likely.
We would hold above that level of support, and that would also depend on what im talking about in just a moment around the cpi data, but once again, just going off the chart alone, its likely that that would hold as some sort of local low. But there is more room to the downside on the slightly larger time frames potentially heading into that 20k range, because these larger indicators are not oversold. Just yet on the weekly charts, for example, and in less than 24 hours, the april cpi data will be released, which will basically update the official inflation rate of the us dollar, which is right. Now. At the time of recording this video sitting at eight and a half percent inflation year on year, but according to consensus and according to the trading economics forecast, they are predicting a drop in inflation year over year because once again as im recording in this video, it Is currently sitting at eight and a half percent year over year, but consensus is predicting that it will drop to 8.1 tomorrow and the trading economics forecast is predicting that it will drop to 8.2 percent tomorrow and, if youre, looking at these forecasts in previous months, you Can see back in february, both consensus and the trading economics forecast were predicting a 7.9 inflation rate year over year and we got exactly 7.9 inflation and then, if youre, looking at march, the trading economics forecast was predicting a possible 8.
3 inflation rate year over year. While consensus was predicting an 8.4 inflation rate year over year and the actual inflation rate came in at 8.5, so not too far off the predictions. So once again, simply based on these forecasts, which have been fairly accurate in recent months, we should see a drop in inflation from 8.5 right now to around 8.1 to 8.2 percent tomorrow now, obviously, inflation above 8 is still extremely bad. That is very high inflation, but if we do end up seeing a drop in inflation, that is actually a good sign, because it shows that inflation is finally starting to potentially cool off, and if inflation finally starts cooling off, that means the fed doesnt have to be, As strict with that tightening compared to if inflation just continued to spiral out of control like, for example, if inflation just continued higher and higher well above 10, then thats very likely that the fed would implement much larger rate hikes like a 75 basis. Point hike, which would be very bearish for markets, but if inflation starts cooling off then it does give the signal to the fed that they might not necessarily have to be as strict, which means we could end up. Seeing continued 50 basis. Point hikes at each fed meeting, which is pretty much what the market is expecting and what is most likely already priced in. But what is not priced in, because jerome powell hasnt really been hinting at.
It is a 75 basis, point hike and a scenario like that. Would most likely occur if inflation continued to get worse, which is why tomorrows cpi numbers inflation numbers are very important for the market and, of course, ill be sure to keep you updated in these videos on this channel and in real time over on my twitter. So if you have not followed me over, there make sure youre doing that and the link to my twitter is in the description down below and also in the pinned comments for real time updates throughout the day. And if you want to maximize your profits in crypto. No matter if prices are going up down or sideways, then these two videos popping up right here on your screen are definitely for you to watch, because in both of these videos i reveal how i continue to make money in crypto, no matter what prices are doing, But anyway, that is it for this update.