Bitcoin rises above $65,000 after CPI report shows inflation easing in April – Kat Technical

Bitcoin rises past $65,000 following the release of the April Consumer Price Index (CPI) report, which indicated a moderation in inflation. This positive economic data boosted investor confidence, leading to a significant rally in Bitcoin’s price【10†source】【11†source】.

The cryptocurrency market has seen increased activity, with Bitcoin experiencing a nearly 30% rise over the past week alone. This rally aligns with broader market trends, including a notable recovery in US equities and growing anticipation for a potential Bitcoin spot ETF approval【11†source】. Additionally, the reduced supply of Bitcoin on exchanges, as investors move their holdings into long-term storage, has created upward pressure on prices. Since the beginning of May, approximately 4,550 BTC, worth over $290 million, have been withdrawn from exchanges, contributing to the price surge【10†source】.

However, market analysts caution that such rapid gains might lead to short-term corrections due to profit-taking activities and potential market overbought conditions. The Relative Strength Index (RSI) indicates that Bitcoin is currently in an overbought state, which might lead to a temporary pullback before continuing its upward trend【13†source】.

Looking ahead, Bitcoin faces significant resistance at around $66,000, with the potential to reach $70,000 if the bullish momentum persists. This rally is also supported by a decline in speculative excess, as open interest in Bitcoin futures has dropped, allowing for a more stable price appreciation driven by true supply and demand dynamics【12†source】.

Overall, Bitcoin’s recent performance reflects a blend of favorable economic indicators, reduced supply on exchanges, and strong investor sentiment, positioning it well for potential further gains in the near future.