BTC Breaks $25,000 As Stablecoins Re-peg

The price of Bitcoin (BTCUSD) is rising again after one of the most difficult weeks for crypto holders. The release of the February CPI report drove the price above $26,000 as the data pointed to easing inflation. After a massive volatility spike, the BTC price has entered a consolidation phase.

At press time, Bitcoin to USD is trading at $24,750, as the price failed to strengthen above $25,000. This is the same zone where the price has already rejected several times in the last month. A recovery of this level could trigger a massive buying pressure on the price to hover towards the 28k-30k region.

Bitcoin price rises on bullish CPI data

Inflation data for February came out yesterday, which was in line with market expectations. The data showed a decline in annual inflation which fell from 6.5% to 6% in February 2023. Furthermore, core CPI inflation also came out as expected at 5.5% year-on-year. These figures were taken as a sign of declining inflation and the BTCUSD price immediately rose.

As according to most analysts, Bitcoin price prediction for 2023 could turn very bullish if the price closes one day above 25,000. On Wednesday, the price is training slightly below this level, preparing for another breakout attempt.

The latest BTC price surge comes just days after stablecoins were removed. Markets experienced unnerving FUD over the past weekend as most US dollar stablecoins lost their peg due to banking concerns.

Bitcoin price technical analysis

Technical analysis of the BTCUSD chart reveals the reason for the ongoing retracement. The $26,489 level falls on the diagonal resistance line shown on the chart. Such resistance is very difficult to break on the first try. In the coming days, the price may retest this level. Another rejection from this level would be very bearish for the price.

It is also clear from the chart that Bitcoin perfectly retested the 200-day moving average. The bounce from the 200 MA and the breakout above the $25,000 level could make the $30,000 Bitcoin price prediction a reality. The upcoming FOMC meeting on March 22 will keep prices in check until next week.