Key Bitcoin takeaways:
- Bitcoin retakes $65,000 after rising over 3.5% Monday.
- The jump appears ahead of a key U.S. inflation report.
- Economists forecast another increase in the consumer prices.
- Meanwhile, Bitcoin highlights Bull Pennant setup, with a $70,000 profit target.
YEREVAN (CoinChapter.com) — The first full week of November saw Bitcoin (BTC) wobbling between $60,000 and $64,000 price levels in the wake of November’s Federal Reserve meeting that ended up with the decision to taper their $120 billion a month asset purchase agreement.
Inflation to rise to 5.8%
In detail, the U.S. central bank decision appeared in response to persistently higher inflation, with September’s consumer price index (CPI) reaching 5.4% for the first time since 1990. That kept Bitcoin traders guessing about the cryptocurrency’s next potential direction, primarily as tapering expected to reduce the appeal of non-yielding safe-haven assets.
Nonetheless, it appears the Fed’s decision to unwind its most expensive quantitative easing program to date has not deterred crypto bulls. For instance, Bitcoin opened this week with a 3.75% upside move above $65,000, now up over 50% this financial quarter.
Related: Inflation "velocity declined," says Cathie Wood as Bitcoin holds $60K-support
The gains — again — took cues from forecasts concerning October’s U.S. CPI report. For the uninitiated, the Bureau of Labor Statistics will release the inflation report on Wednesday, which economists believe would reflect another month of rising consumer prices.
For instance, Wall Street economists predict that U.S. inflation has risen 5.8% from the same month a year ago. Meanwhile, consensus forecasts compiled by Bloomberg also indicate that consumer prices rose 0.6% month-over-month. That would push the CPI to 6%.
As a result, Bitcoin, which many consider a defense against inflationary pressures, illustrated its bullish tendencies for the week ahead. More tailwinds for the flagship digital asset come in the forms of the Fed’s decision to keep its interest rates lower near zero even as it continues tapering.
Related: Bitcoin (BTC) rises amid inflation-led US dollar weakening
Gold also rose in sync with BTC Monday, while the U.S. dollar index (DXY) dropped.
Technical setup: BTC to all-time high
Bitcoin looks poised to continue rallying towards $67,000, its record high to date, in the week ahead.
That is possible due to the cryptocurrency’s latest break above its descending trendline resistance that is a part of what appears like a Bull Pennant.
In detail, Bull Pennants are bullish continuation patterns that emerge as the price consolidates after a strong move higher. Later, the price tends to break out of the pattern to the upside to reach a target at length equal to the previous bullish move’s height (aka Flagpole).
That puts BTC en route towards $70,000, the least.
