Bitcoin consolidates in a tight range ahead of the US CPI. What to watch next?

<p class="MsoNormal" style="margin: 0 0 11px; line-height: 106%; font-family: Aptos, sans-serif; font-size: 15px;">Bitcoin’s upside has been limited by increasingly deteriorating macro conditions as oil prices continue to rise amid escalating tensions in the Middle East.</p><p class="MsoNormal" style="font-family: Aptos, sans-serif; margin: 7px 0; line-height: normal; font-size: 15px;">The Houthis have intensified attacks against Saudi Arabia, including a reported strike on an administrative building at Saudi Aramco's Dhahran compound. The “energy ceasefire” between Russia and Ukraine failed to materialise and the US-Iran negotiations remain at a stalemate.</p><p class="MsoNormal" style="font-family: Aptos, sans-serif; margin: 7px 0; line-height: normal; font-size: 15px;">Without some easing in those factors, the crypto market might remain under pressure as elevated yields and oil prices will likely continue to weigh on the risk sentiment.</p><p class="MsoNormal" style="margin: 0 0 11px; line-height: 106%; font-family: Aptos, sans-serif; font-size: 15px;">Today, all eyes will be on the US CPI report. Traders will mainly look at the core m/m measure as Fed officials have been focusing on the monthly pace of core inflation to determine how many rate hikes will be needed and how quickly they should tighten policy.</p><p class="MsoNormal" style="margin: 0 0 11px; font-family: Aptos, sans-serif; line-height: normal; font-size: 15px;">An uptick to 0.3% might not be enough for the market to fully expect a hike in October, but a jump to 0.4% should do it. In such a scenario, we will likely see a selloff in Bitcoin on a hawkish repricing. An in-line or even lower than expected figure, on the other hand, could lead to a short-term relief rally for the cryptocurrency.</p><p class="MsoNormal" style="margin: 0 0 11px; line-height: 106%; font-family: Aptos, sans-serif; font-size: 15px;"> </p><p class="MsoNormal" style="margin: 0 0 11px; line-height: 106%; font-family: Aptos, sans-serif; font-size: 15px;">BITCOIN TECHNICAL ANALYSIS – DAILY TIMEFRAME</p><p></p><p>On the daily chart, we can see that <a href="https://www.tradingview.com/symbols/BITCOIN/" rel="follow" style="color: rgba(70, 120, 134, 1); text-decoration: underline;">Bitcoin</a>has recently bounced from the 81,500 support zone. If we get another pullback into the support, we can expect the buyers to step in, with a defined risk below it, to keep targeting a rally into the 98,000 level. The sellers, on the other hand, will want to see the price breaking lower to pile in for a drop into the 75,000 level next. </p><p>BITCOIN TECHNICAL ANALYSIS – 4 HOUR TIMEFRAME</p><p></p><p>On the 4 hour chart, we have a minor resistance around the 84,200 level. The sellers will likely continue to step in there, with a defined risk above the resistance, to position for a drop back into the support targeting a break below it. The buyers, on the other hand, will look for a break higher to increase the bullish bets into the 87,400 level next.</p><p class="MsoNormal" style="margin: 0 0 11px; line-height: 106%; font-family: Aptos, sans-serif; font-size: 15px;">BITCOIN TECHNICAL ANALYSIS – 1 HOUR TIMEFRAME</p><p></p><p>On the 1 hour chart, we have a minor support around the 83,000 level. The buyers will likely continue to step in around the minor support, with a defined risk below it, to keep pushing into new highs. The sellers, on the other hand, will look for a break lower to pile in for a drop into the 81,500 support targeting a break below it. From a risk management perspective, though, it would be better to wait for the US CPI, as surprises could trigger big moves and make technical levels useless. The red lines define the <a href="https://investinglive.com/Education/trading-tip-know-the-average-daily-range-adr-20220207/" rel="follow" style="color: rgba(70, 120, 134, 1); text-decoration: underline;">average daily range</a> for today.</p><p class="MsoNormal" style="margin: 0 0 11px; line-height: 106%; font-family: Aptos, sans-serif; font-size: 15px;">UPCOMING CATALYSTS</p><p class="MsoNormal" style="margin: 0 0 11px; font-family: Aptos, sans-serif; line-height: 103%; font-size: 15px;"><a href="https://investinglive.com/EconomicCalendar" rel="follow" style="color: rgba(70, 120, 134, 1); text-decoration: underline;">Today</a> we have the US CPI report. Tomorrow, we get the US PPI, the US Retail Sales and the latest US Jobless Claims figures.  </p> This article was written by Giuseppe Dellamotta at investinglive.com.