Bitcoin (BTC) is continuing to climb, albeit relatively sedately, although nagging resistance at $112,000 and $113,000 needs to be put behind it if this current upward impulse is to continue. Two potential flies in the ointment could be the upcoming data releases for producer and consumer inflation. US Inflation figures allowing, Bitcoin set to continue its rise After a small dip outside of the ascending channel, the $BTC price is back inside on Wednesday and challenging the $112,000 resistance once again. This level has been surpassed on no less than 4 occasions so far in the last week, so it wouldn’t be a surprise to see the bulls push the price above this horizontal level once more. In the world of traditional finance in the US, the monthly PPI figures are due out on Wednesday, and then on Thursday, CPI data is released . The Month on month PPI (Producer Price Index) forecast is set to beat the previous month handily, by reducing from 0.9 to 0.3, while the CPI (Consumer Price Index) forecast is for a slight increase from 0.2 to 0.3 m/m. Unless these figures come in a lot worse than forecast, the Federal Reserve should feel bold enough to make the expected rate cut at next week’s FOMC meeting. Risk assets such as gold and Bitcoin could continue to rise. $BTC price continues to rise inside ascending channel Source: TradingView The current ascending channel continues to lengthen as the $BTC price maintains inside its trendline boundaries. The price is just now pushing through the $112,000 resistance, and if it confirms above, this could be the last time it drops below, given that the ascending channel will soon leave this level behind. At the bottom of the chart, the Stochastic RSI indicators are showing a recent cross up. As the indicators rise back to the top, this can signal the momentum to perhaps help push the $BTC price through the resistance and perhaps even to the top of the channel. Bullish ascending triangle Source: TradingView Moving out into the daily time frame one can observe that an ascending triangle looks to be forming. This triangle is formed by the bottom trendline of the channel and the $113,500 horizontal resistance. This is a very bullish pattern and in most cases price action would be expected to break out to the upside. At the bottom of the chart, the RSI reveals that the indicator line is right at the 50.00 mid-point. If one looks back at previous times the price has broken through or bounced from this level, it can be seen that it usually signals a strong upside price impulse. DXY set to go lower Source: TradingView Rather than look at the weekly chart for $BTC , it is perhaps more informative to look at the Dollar Index (DXY). It can be seen that the DXY was rejected again from a descending trendline that goes all the way back to 1985. Recently, the DXY has also dropped below the 100 level, turning this into resistance. The DXY is now holding under the 0.618 Fibonacci, so it might be expected that it carries on down to the 0.786 Fibonacci at 94.7. Could the dollar drop out of a multi-year triangle pattern? Source: TradingView The two week chart shows the entirety of that downtrend for the DXY. It can also be seen that the index is hovering perilously close to the bottom of a huge, multi-year triangle pattern. If the dollar drops under this pattern Bitcoin could experience an explosive final stage to its bull run. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
