The crypto market is deep in the red, causing the crypto and the stock market to trade at a floor price. Bitcoin (BTC) actually fell by 17.45% in 24 hours, and this plunge has many people worried. At the time of writing, BTC is trading around $21,000. The prolonged negative run and decline could continue and this could break the lower support. This passage indicates that BTC still faces challenges from the fundamental and technical aspects to resume the uptrend.
How Bitcoin Reacted to the Rise in CPI
Bitcoin price plummeted Friday after CPI data from the United States indicated inflation was far from slowing down. The CPI, the most widely used measure of inflation in the United States, is now up 8.6% year-on-year, pushing prices down sharply.
While the recent bearish move has kept some crypto buyers on the sidelines. Has the price crash also increased the chance of a possible Bitcoin rally. Currently, BTC is trading around $21,000, with the possibility of further declines. The coin is down more than 17.45% in the past 24 hours.
Bitcoin prices are in a strong downward trend
After breaking through the ascending triangle and reaching the peak of consolidation, BTC price has now fallen below the USD 21,000 support levels.
The price has fallen close to the critical level and the latest support above USD 20,000 is between USD 22,500 and USD 23,800. To keep the price above $20,000, prices must consolidate within these areas and not fall below them.
In the worst-case scenario, the price could continue to fall and break through the lower support with a prolonged bearish run.
