- With BTC’s price falling below $26,000, some profit-taking is also taking place. As of the time of writing, Bitcoin is trading at $25,922, with a market cap of $505 billion.
- The Bitcoin network has interacted with 1.1 million daily addresses since Thursday, representing a five-month high.
- If core CPI data increases, the Fed may announce another interest rate hike instead of taking a break. An unexpected increase in core inflation could cancel out the progress seen in the last 24 hours.
As Bitcoin’s active addresses reach a five-month high, the price continues to consolidate around $26,000. What are the factors needed for an uptrend?
Increase in Bitcoin’s Active Addresses
Bitcoin has shown volatile price movements in the last two days, with the BTC price fluctuating between $25,000 and $26,500. This has resulted in an increase in on-chain activity.
However, with BTC’s price falling below $26,000, some profit-taking is also taking place. As of the time of writing, Bitcoin is trading at $25,922, with a market cap of $505 billion.
On-chain data provider Santiment reported that Bitcoin is still the dominant player in terms of price and has reached high levels like $26,500. Specifically, the Bitcoin network has interacted with 1.1 million daily addresses since Thursday, representing a five-month high. Today, however, traders are opting for profit-taking following the modest increase observed yesterday.
Although the BTC price has fallen below $26,000 at the time of writing, Bitcoin’s technical indicators still appear somewhat optimistic. Popular crypto analyst Ali Martinez stated, “In a week where important financial events are unfolding, the TD Sequential indicator has given a ‘buy’ signal on the BTC weekly chart. To confirm, BTC needs to close above $25,600. If confirmed, the targets could be $28,350 or even $31,800.”
Bitcoin Watches U.S. CPI Data
On Wednesday, September 13, the U.S. will release its CPI data, and reports suggest that inflation could rise for the second time in August. The headline inflation for August is likely to increase from 3.2% in July to 3.6%.
This could be negative for risky assets like Bitcoin and other cryptocurrencies. If core CPI data increases, the Fed may announce another interest rate hike instead of taking a break. An unexpected increase in core inflation could cancel out the progress seen in the last 24 hours and result in a series of events that push Bitcoin’s price above $26,000. In bearish conditions, BTC could potentially test the support level at $24,578. If this level is breached, it could lead to a six-month low below $21,000.
