Bitcoin Surge Above $31K Amid Pending US Inflation Data

Bitcoin traded just around $31K, moving up marginally from Friday but still inside its tight range. Since early May, Bitcoin has fluctuated a little above and below this level, depending on the day’s events, as investors wait for unambiguous indicators regarding the path of inflation and the global economy.

Crypto investors, on the other hand, are nervous about the upcoming US inflation data report scheduled for Friday and Russia’s airstrikes on Kyiv, which it claimed destroyed tanks donated from abroad, as Vladimir Putin warned that any Western deliveries of longer-range rocket systems would prompt Moscow to strike “objects that we haven’t yet struck.”

Last week, the pioneer crypto ended at $29,250 (on FTX exchange), after which it surged back and even rose to over $32K just a few days ago.

Bitcoin’s market valuation is still around $593 billion, and its dominance over altcoins is now above 46%.

Ether, the second-largest cryptocurrency by market capitalization, was recently trading just around $1.87K, up marginally over the previous two weeks and well within the range it has held under $2K.

Other major cryptos were mainly in the green, with LINK and ADA among the biggest gainers, up 5% and 3%, respectively. As is common on weekends, trading was light.

Bitcoin price outlook

• If Bitcoin’s price can finally break out of this range, the 50-day moving average line, as well as the $35K area, will likely serve as important resistance levels, which, if not broken, would likely trigger the following leg lower.
• The bearish trend, on the other hand, is still present, and the flagship crypto price could breach below $28K even if a relief bounce occurs. In such a case, the next demand zone will be $24K.
• If the latter fails to hold, the most valuable crypto may retest the all-time high of the 2017 bull market in the $17K-$20K range, a level that might finally act as the bear market’s bottom.