Bitcoin price heads above $23.5K after highest EU inflation in history

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Bitcoin (BTC) traded higher on August 18 as the latest data confirmed the European Union’s highest inflation rate.

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BTC/USD 1 hour candlestick chart (Bitstamp). Source: TradingView

Support and resistance are close to the spot price of BTC

Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD passed $23,500 at the time of writing, having maintained $23,000 as support overnight.

Concerns about a deeper risk asset drawdown spread throughout the week, with Bitcoin and Ether (ETH) notably unable to crack long-term resistance levels.

With bulls seemingly on the back foot, the mood among analysts was naturally cautious.

“BTC has broken out of this huge rising channel/wedge that everyone seems to be watching,” wrote Daan Crypto Trades in part of his latest. Twitter update.

“23.8-24K will act as resistance. Pull back and this would be a big bear trap. A low rejection and we’re going down.”

Short-term support meanwhile came in the form of whale purchases at $22,800 and above, on-chain monitoring resource Whalemap argued.

Now just below Bitcoin’s 200-week moving average, the $22,800 zone should be the line in the sand to watch in case of a market downturn.

“Back to square one,” the Whalemap team summarized next to a chart showing the extent of whale coins held by price point.

“Whale rallies at $23,400-$22,800 continue to be the closest support we have for Bitcoin (if we start to fall).”

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Bitcoin whale wallet flows in annotated chart. Source: Whalemap/Twitter

Inflation is hitting records

Macro triggers were clearly inflationary skewed on the day, with the EU’s 9.8% July print headline.

Related: Bitcoin miners hodl 27% less BTC after 3 months of major selling

The figure for July marked the bloc’s highest inflation reading, up 9.6% year-on-year in June. For context, in July 2021, inflation was 2.5%.

“The lowest annual rates were recorded in France, Malta (both 6.8%) and Finland (8.0%). The highest annual rates were recorded in Estonia (23.2%), Latvia (21.3% ) and Lithuania (20.9%). a report of Eurostat stated.

“Compared to June, annual inflation fell in six member states, remained stable in three and rose in eighteen.”

In an an interview with Reuters on August 18, Isabel Schnabel, Member of the Executive Board of the European Central Bank (ECB), could not say with confidence that inflation has peaked.

“I would not rule out that, in the short term, inflation will increase further,” she said.

“But any projection is currently subject to high uncertainty. So it is very difficult to predict when inflation will peak.”

The EU figures came a day after Britain recorded its first double-digit inflation readings since the early 1980s.

This month, US price growth appeared to be slowing, with the next inflation reading due on September 13.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and business move involves risk, you should do your own research when making a decision.



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