Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- The September US CPI data will be released on October 12.
- Sell limit orders were placed for $28.5k, $29k and $29.5k.
On October 6, Bitcoin [BTC] the price peaked and was retested at $28,000 following the resilient US labor market in September. According to the U.S. Bureau of Labor Statistics (BLSIn September, payroll employment rose by 336,000, and unemployment remained at 3.8%.
Read Bitcoins [BTC] Price prediction 2023-24
The positive labor market data could prompt an aggressive stance from the FOMC at its next meeting in November. However, the CPI (Consumer Price Index) data, scheduled for October 12, could clarify the Fed’s interest rate decision in November.
In the previous BTC price action analysisAMBCrypto correctly predicted a peak above $28k, followed by a retracement towards $27.5k, driven by a liquidity chase.
Which Way for Bitcoin Price During CPI Volatility?
Source: BTC/USDT on TradingView
BTC has shown a trend of retesting price imbalances or liquidity areas. Buyers have used the $27.0k – $27.2k (orange) price imbalance since October 2 to reenter the market.
The recent rejection and high of $28.5k was also a previous low in early August. Above this level lies another price imbalance of $28.7k – $29.0k (white), bordering on a daily bearish OB of $29.0k -$30.4k (red).
As such, we could expect BTC to retest the aforementioned overhead resistances ($28.5k, $29k, or $29.5k) if Thursday’s CPI data favors bulls.
Conversely, bulls are expected to defend the price imbalance and demand area of $27.0k – $27.2k.
Any decline below the ($27,000) area could weaken BTC to $26.4k or a daily bullish OB, especially if September’s CPI favors the sellers.
Meanwhile, buying pressure has been positive, as the RSI showed, but spot demand has fluctuated in recent days, as evidenced by the wavering OBV. Moreover, CMF operated below zero, indicating that capital inflows into the BTC market remained subdued.
Sell limit orders for $28.5k and $29k
Source: MobChart
Based on order flow analysis from MobChart factsBTC could see a price reaction of $28.5k, $29k or $29.5k. There were significant sell limit orders at these levels. On Binance Exchange alone, the $28.5k and $29k had 145 and 157 BTCs for sale respectively at the time of writing.
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On the other hand, the buy limit orders were $27.2k and $27.0k. The above buy and sell limit order placement levels coincided with key liquidity levels such as the liquidation of Coinglass Card showed.
So, we could see extended BTC price swings between $27,000 and $28,000-$29,000 in the coming days.