By Chris Hollingworth 
Bitcoin (BTC) showed resilience in the face of Wall Street opening gains on March 13, despite a continued decrease in US inflation indicators.
Data from Cointelegraph Markets Pro and TradingView indicated that BTC/USD was hovering around $81,500, reflecting a 2.3% decline on the day. The Producer Price Index (PPI) for February fell below expectations, following the trend set by the Consumer Price Index (CPI) the previous day.
According to the US Bureau of Labor Statistics (BLS), the index for final demand rose by 3.2% over the 12 months ending in February. The increase in prices for final demand goods offset a decline in services prices for the month.
Despite cooling inflation acting as a positive factor for cryptocurrencies and risk assets, it also hindered a rebound in US dollar strength, as evidenced by the US Dollar Index (DXY).
Both stocks and cryptocurrencies remained relatively unaffected by the inflation data, leading some analysts to connect the muted reaction to the ongoing US trade war. The market response to the data suggests that President Trump may maintain his current policies, potentially intensifying trade tensions.
With the Federal Reserve’s upcoming interest rate decision looming, market expectations for financial easing remained low. The probability of a rate cut at the next meeting was just 1%, while odds for the May meeting stood at 28% according to CME Group’s FedWatch Tool.
Bitcoin’s price action remained within buy and sell liquidity bands on exchange order books, with the 200-day simple moving average (SMA) acting as a resistance level. For traders like Keith Alan, reclaiming this trendline, which historically serves as support during bullish Bitcoin markets, was seen as a crucial hurdle to overcome.
Monitoring data from CoinGlass highlighted significant upside resistance just below the $85,000 mark, indicating potential challenges for Bitcoin’s price movement.
This article aims to provide an overview of the market dynamics and does not offer specific investment advice. Readers are encouraged to conduct their own research and analysis before making any investment decisions.
