US inflation data, released this Wednesday morning (12), showed better numbers than the market predicted.
As a result, Bitcoin not only remains above $30,000, but also has a clear path to continue its rally. After all, the Fed has to rethink its monetary policy after the inflation review in March, and could interrupt the rate hike.
However, the biggest barrier to Bitcoin lies on its own chart. After all, several analysts point out that the bulls will have a hard time breaking through the region between $32,000 and $34,000.
US inflation is showing signs of control
Fed Chairman Jerome Powell should have a quiet day following the release of dollar inflation data this Wednesday (12). While the market predicted a monthly increase of 0.2%, inflation was only 0.1%.
While food remained zero to zero, with homemade meals discounting 0.3%, the energy sector (fuels) was the main contributor to the excellent performance, as prices fell 3.5% in March.
In contrast, items such as new vehicles and transport services continued to increase, up 0.4% and 1.4% respectively. Despite this, control over food and energy is the most important thing for the Fed, as these are the products that are felt in the pockets of all citizens.

Annual inflation in the US is at 5%, still a long way from the 2% target, but already a long way from the high of 9.1% in June last year.
So now the market expects the Fed to take a break from raising interest rates. At the last meeting, the US central bank raised interest rates by only 0.25%. The next announcement from the Fed is on the first Wednesday in May, the 3rd.
US inflation data puts Bitcoin at ease, but the rally has major technical resistance ahead
After a huge fight to break out of the $25,000 region, the bulls now have their next target in their sights. According to analysts, there is strong resistance between the $32,000 and $34,000 region.
Therefore, even if the Fed decides to pause the rate hike, it should not be enough to break this barrier immediately. After all, it is estimated that interest rates will remain at this level throughout the year until the US Federal Reserve understands that inflation is under control.
Finally, it is important to note that there is a big gap from $34,000 to $69,000. That is, it is possible that Bitcoin will surprise everyone and return to its all-time high later this year.
Source: Live Coins

Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.