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Market Status: Continued Bitcoin’s lackluster trend after last month’s US inflation rate release

وضعیت بازار: ادامه روند کسل‌کننده بیت کوین پس از انتشار نرخ تورم ماه قبل آمریکا

Last weekend, the digital currency market was mainly influenced by the publication of the inflation rate statistics for the month of September (September) in the United States, and although other economic indicators were also in a discouraging situation during this period, Bitcoin still did not move far from its fluctuation range in recent weeks.

To Report CoinDesk, the daily trading volume of Bitcoin has been lower than the 20-day moving average of this index in 9 of the last 10 days. In other words, it was only on Thursday, with the publication of the inflation rate last month, that the volume of transactions experienced a relative increase.

Bitcoin is currently trading around $19,200 and the price has been almost unchanged over the past 24 hours and 7 days. Apart from a few exceptions, the digital currency has mostly fluctuated between $19,000 and $21,000 over the past month and has lost nearly 60% of its value since the beginning of this year.

Ethereum was bought and sold above 1,300 dollars the previous day; A level that is 2% higher than the starting point of trading of this digital currency on the first day of the week (Monday). Since the change of Ethereum network mechanism to proof of stake on September 15 (24 September), the price of this digital currency has dropped by about 23%, and its return since the beginning of 2022 has been negative 64%.

On Thursday, the US September inflation report was published, which shows that the price of goods and services needed by American households has grown by 8.2% compared to September 2021; The rate, which is slightly higher than 8.1%, was expected by experts. Naturally, the market reacted negatively to this statistic at first, but a little later, prices in various financial markets, including digital currencies, recovered again.

Spending in the US retail sector was unchanged in September, contrary to expectations for a 0.2% increase in this index. The low rate indicates the lack of demand in the market, as a result of the increase in prices.

In the traditional financial markets, the “S&P500” and Nasdaq (Nasdaq) indices have dropped by 1 and 2.7% respectively in the last 7 days, while the Dow Jones index has ended this week with a 1.5% growth.

Bitcoin technical status

The price movements of Bitcoin and Ethereum were not very impressive on Friday, with both assets ending the trading day almost unchanged.

Despite the increase in the volume of trading activities on Thursday, the return of Bitcoin trading volume below the 20-day moving average of this index caused the same dull mood of recent weeks to dominate the market again. Ethereum had similar conditions and the trading volume of this digital currency on Friday was close to the 20-day moving average of this index.

Market Status: Continued Bitcoin's lackluster trend after last month's US inflation rate release
Bitcoin price chart; One-day view of the “Bitcoin/USD” market.

As can be seen from the Bollinger Bands indicator on the chart, the price is still below the 20-day moving average, while the volume of fluctuations remains constant.

The Bollinger Bands indicator, while drawing a specific average for the price, also shows two standard deviations above and below the average.

Statistically, the price fluctuates within the standard deviation range of the Bollinger Bands indicator 95% of the time. The increase in height between the lower and upper lines of this indicator indicates the growth of the volume of fluctuations, and the narrowing of this interval depicts the decrease of fluctuations.

Since October 3, this range has narrowed for Bitcoin, which shows the decrease in volatility in the market of this digital currency.

Before falling below the middle of this interval (20-day moving average), the price had managed to reach the upper line of Bollinger Bands between October 3 and 5 (October 11 and 13). The opposite of this flow occurred on Thursday and the price returned to the bottom line of this interval, which was obviously influenced by the publication of the inflation rate statistics of the previous month in the United States.

Bitcoin tried to reach $20,000 on Friday, which continued to face resistance and fell to the levels you see now.

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