Bitcoin is trading just above the $85,000 mark, showing little reaction to the latest softer-than-expected and closely watched US inflation data. The muted response highlights a cautious market tone, with traders appearing reluctant to take decisive positions despite supportive macro signals.
According to crypto analyst Ali Martinez, Bitcoin remains range-bound on lower timeframes. He noted that the price continues to face firm resistance just below the $90,000 level, while support is emerging around $85,400. Martinez suggested that a clear breakout above resistance could revive bullish momentum, whereas a decisive move below support may expose the market to further downside pressure.
Daan Crypto Trades drew attention to historical month-end behavior, arguing that Bitcoin is likely to experience a larger price move before the end of the month. He pointed out that the current distance between Bitcoin’s monthly high and low stands at roughly 12%, which is relatively narrow compared to historical norms. In more than 90% of cases, monthly candles tend to exhibit wider trading ranges, making it statistically unlikely that both the monthly high and low have already been established.
This analysis suggests that one of these levels is still likely to be broken before month-end. While the data does not provide a directional bias, it implies rising volatility, with Bitcoin currently trading near the midpoint of its monthly range and requiring a move of at least 5% to test either extreme.
Meanwhile, analyst Michael van de Poppe emphasized that Bitcoin’s recent price action underscores the market’s sensitivity to macroeconomic developments, even when economic data appears supportive. Despite upbeat US inflation figures and a brief upside attempt, Bitcoin quickly reversed lower, reinforcing the importance of the $88,000 level as a key resistance zone that must be reclaimed to restore upside momentum.
Van de Poppe also highlighted the Bank of Japan’s policy decision as the most significant macro catalyst of the week. He noted that while US equities such as the Nasdaq are rallying and gold remains stable, cryptocurrencies are lagging as investors position cautiously amid speculation over a potential interest rate hike.
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