After the US consumer price index (CPI) data, BTC even dropped below the $30.000 level. It currently remains at risk of a move below the $29.500 price zone.
The CPI rose 1,0% in May, compared to April, according to data released this Friday (10) by the US Labor Department. In comparison with April 2021, the increase was 8,6% (the worst result in 12 months since December 1981). Core inflation, which excludes food and energy (whose prices are more volatile), rose 0,6% on a monthly basis.
What can happen to Bitcoin?
In the current bearish scenario for Bitcoin, the price even broke below the $30.000 level and settled below the 100 hourly simple moving average. It traded near the $29.500 support zone and formed a low at $29.501. Bitcoin is now consolidating losses and trading near $29.700.
An immediate resistance on the upside is near the 23,6% Fibonacci retracement level of the recent decline from the high of $31.500 to the low of $29.501. The first major resistance is near the $30.500 level and the 100 hourly SMA. The second resistance is near the $31.000 level.
If the bears manage to push the bitcoin price below the support that is close to the $29.500 level could put a lot of pressure on the bulls. In the stated case, the price could drop to the $28.500 support zone in the short term, the loss of this crucial support could make BTC retest the $26.700 region.
In general, the bitcoin price is falling, if BTC breaks the $28.500 support level, there could be a sharp decline in the coming sessions.
