The price of bitcoin has fallen almost 8% in the past day due to the high Consumer Price Index report.
The prices of most altcoins fell on their respective charts after the CPI posted a 0.1% increase in August, which has now brought the unadjusted value to 8.3%.
The annual increase was to be 8.1%. In the past 24 hours, Bitcoin has recorded a loss of 4%.
Since the market is experiencing an extended sell-off, a further drop in the value of BTC can be expected. The technical outlook for the coin was bearish as buyers exited the market at the time of writing.
Bitcoin price struggled at $18,900 last month, but managed to break through that price level last week.
Bitcoin broke above the $22,000 level. The recent hit in the CPI report pushed the coin lower.
The indicators have chosen to side with the bears given how the sellers are dominating the market at press time. The global cryptocurrency market capitalization today is $1.04 trillion, with a negative change of 2.5% in the last 24 hours.
Bitcoin Price Analysis: One-Day Chart
BTC was trading at $20,200 at the time of writing. The drop from the $22,000 mark was sudden due to the unexpected numbers in the CPI report.
The immediate resistance for Bitcoin price was $21,000. If BTC manages to reverse this level, it may return to trading above the $22,000 mark.
Local support for BTC was $19,200. However, with the intense selling, the coin might fall to trade near the $18,900 support line.
The amount of Bitcoin traded in the last session has increased slightly, indicating that there has been an influx of buying force.
BTC has seen a sharp decline in its buying strength over the past 24 hours. This drop in the number of buyers has further pushed the price close to the nearest support line.
The relative strength index was seen below the half line, indicating strong selling strength and, therefore, a downtrend.
Over the past few trading sessions, RSI has noted a slight upside, indicating that buying strength has increased slightly.
The bitcoin price just broke down to the 20-SMA line, which was also a sign that the sellers were driving the price momentum in the market.
BTC posted a buy signal despite the market registering a small buy signal after the buying strength showed appreciation.
The Awesome Oscillator represents the overall strength of the market and the direction of the price. AO climbed above the half line, indicating that buyers could act on this price action.
Even if the buyers act on the buy signal, the price of the asset would hardly notice any upward movement. The Directional Movement Index signals price direction and momentum.
The DMI was negative because the -DI (orange) line was above the +DI (blue) line. The average directional index (red) was above the 20 mark, which means that the current price direction has strengthened.