Bitcoin Price Reclaims $61k – Is The Bottom In?

Bitcoin's post-CPI price action has been a remarkable show of strength from the bulls.

Bitcoin’s post-CPI price action has been a remarkable show of strength from the bulls.

The Consumer Price Index for September missed expectations, with the headline CPI rising 2.4% YoY, slightly above the forecasted 2.3%. Core CPI also increased 3.3% YoY, surpassing the expected 3.2%.

Similarly, the Producer Price Index for September – released today on Friday – came in hotter than expected, especially the 3.3% core PPI print.

After a sharp decline to $59k, the Bitcoin price has managed to hold all key support levels. For instance, it secured a daily close above the 100-day Simple Moving Average, which has been a critical S/R level for the past few months.

Similarly, BTC is trading above the 200-day Exponential Moving Average.

The 99-day Smoothed Simple Moving Average has been another key support level for Bitcoin. After initially dipping below it, it managed to flip the indicator before the daily close.

BTC is also forming a falling wedge pattern near the 99SMMA. A breakout above the upper trendline could trigger a bullish reversal to $64k.

The resilience of Bitcoin bulls isn’t entirely surprising. Hot inflation prints may slow the pace of the Federal Reserve’s quantitative easing, but they won’t stop it. After all, the latest FOMC minutes reveal that Fed officials are confident inflation is on track to reach the 2% target.

With the global cutting cycle still underway, market participants are anticipating a strong uptick in global liquidity. Unsurprisingly, meme coins are front-running a larger move in BTC. Solana meme coins – Popcat and Dogwifhat – are leading the rally, up by nearly double digits today.

However, low-cap meme coins are currently stealing the spotlight as crypto investors continue to hunt for 10x to 100x returns.