FX.co ★ Bitcoin breaks $45K barrier amid continuing inflation in United States. What next?

The world's first cryptocurrency moved within a narrow accumulation range of $42K-$44K. The coin broke swing resistance at $44,2K afterward. Investors' reaction to the monthly inflation report in the United States triggered a rally in BTC. According to the data published on February 10, consumer prices accelerated to 7.5%. The reading had been expected to rise to 7.3%.

The cryptocurrency initially went down but then rebounded from the support zone around $42.6K and passed the $45K mark. The uptrend went on. Later, the price gained 3% amid an increase in trade volumes and bullish activity.

The target level is seen at $46K. However, the coin may not touch this level. After all, the current rally has been triggered by disappointing inflation results and is associated with higher volatility. Against this backdrop, BTC/USD trading could be unpredictable.

In the H1 time frame, the pair traded mixed as buyers and sellers were trying to gain control over the market. After breaking through $45.7K, the price went down. The downward movement slowed down around $44.4K where bullish activity increased, and the quote retested the $45.7 mark. Bitcoin is highly likely to break this barrier.

The Stochastic indicator is approaching the overbought zone, signaling a bullish impulse. The RSI is at 61, indicating increased bearish activity. However, the price is unlikely to retest and consolidate above $45.7K.

In the H4 time frame, the quote has left the area of consolidation. Bitcoin is about to approach $45.7. The volume of long positions has increased at around $45K. Technical indicators confirm the uptrend.

In the D1 time frame, the price is heading towards $46K. There is a high likelihood of a false breakout there, and the quote then may go down to $43K-45K or even lower. There are several green candlesticks on the D1 chart, shows a gradual decrease in the volume of long positions.

The flagship cryptocurrency may hit $46K but then retrace down. The downward target is seen at $40.1K, where bullish activity decreased. Consequently, the inverse head and shoulders pattern may form and the asset may rise to the $46K-50K range.