Bitcoin has been showing volatile price movements over the last two days with the BTC price oscillating between the range of $25,000-$26,500. As a result, the on-chain activity has also shot up at this point.
However, there’s some profit-taking as well with the BTC price tanking under $26,000. As of press time, bitcoin is trading 2.8% up at $25,922 with a market cap of $505 billion.
On-chain data provider Santiment reported that Bitcoin remains the dominant player in terms of price and has surged to reach as high as $26.5K. Notably, the Bitcoin network has witnessed interactions from 1.1 million daily addresses since Thursday, marking a five-month high. Today, traders are opting for profit-taking following the modest increase observed since yesterday.
Although the BTC price has slipped under $26,000 at press time, Bitcoin technical indicators continue to show some optimism along the line. Popular crypto analyst Ali Martinez noted: “As we navigate a week with key financial events, it’s crucial to highlight that the TD Sequential indicator has signaled a ‘buy’ on the $BTC weekly chart. For this to be validated, #BTC needs to close above the week above $25,600. If confirmed, targets could be $28,350 or even $31,800″.
Courtesy: Ali charts
Bitcoin Remains Wary of US CPI Data
On Wednesday, September 13, the US could be releasing its CPI data and reports suggest that inflation could see a second consecutive rise. For the month of August, the headline inflation could rise to 3.6% from 3.2% in July.
This could be negative for risk-ON assets such as Bitcoin and other cryptocurrencies. If the core CPI data increases, the Fed might announce another rate hike instead of pausing down at the moment. An unexpected surge in core inflation might negate the progress seen in the last 24 hours, during which the Bitcoin price rose above $26,000. Should bearish conditions prevail, BTC could potentially test the support level at $24,578. If this level is breached, it could lead to a drop to a six-month low of $21,000.