Bitcoin Consolidated Above $52,000
Bitcoin ends the week above the $52,000 mark. Fresh inflation data and Bitcoin ETFs trading support the bullish market sentiment.
The week's inflation data came in above expectations and Bitcoin reacted negatively, falling to $48,000. Producer Price Index data was released today. The main producer price index is 0.5% on a monthly basis and 2% on an annualized basis. The Bitcoin price broke the $52,000 mark. At the time of writing, the asset was trading at $52,214.
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Friday's Bitcoin exchange rate remained near recent highs amid a rally that saw the market value of digital assets reach its highest level in two years. The market capitalization of cryptocurrencies approached the $2 trillion mark this week.
The Bitcoin rally was also influenced by major cryptocurrency companies, one of which was Coinbase. The quarterly earnings report turned out to be satisfactory. Coinbase shares went up, followed by cryptocurrency prices. The inflow of funds into ETFs and the expected halving: all of this also has a positive impact on Bitcoin's price dynamics.
Bitcoin formed a multi-week high at $52,843, then the price pulled back just below $52,000. Bitcoin is now moving towards the nearest resistance level at $52,500. The next key resistance could be the $52,800 level, above which the price could continue its rally to $53,200, $54,000 and $55,000. On the negative side, if Bitcoin fails to rise above the $52,800 resistance zone, another downward correction to the support levels of $51,500, $50,550 and $48,500 could begin.
This is not a 100 percent statement. The cryptocurrency market is volatile. Investors should stay cautious and remember the importance of DYOR.
