BTC Bulls to Target $31,000 on US Wholesale Inflation and Jobless Claims

On that day, bitcoin's (BTC) price dropped by 1.03%. BTC finished the day at $29,879. This partially reversed a gain of 1.95% on Tuesday. BTC fell short of Tuesday and the year's high of $30,494 after the negative session.

BTC increased to a noon high of $30,468 after a volatile morning. BTC declined to a low of $29,677 in the middle of the afternoon after failing to pass the First Major Resistance Level (R1) at $30.596. However, BTC returned to the $30,000 level before reversing course and plunging back into negative territory after finding support at the First Major Support Level (S1) around $29,681.

US CPI Report Pushes BTC Into the Negative

The Wednesday session was really active. It was all about the US CPI Report. Investors anticipated that the Fed will increase rates by 25 basis points in May prior to the news. Despite the mixed results, a rise in core inflation increased the likelihood of an interest rate increase of 25 basis points, which drove the price of bitcoin below $30,000.

Compared to an anticipated 5.2%, the US annual inflation rate decreased from 6.0% to 5.0%. However, the core inflation rate increased from 5.5% to 5.6%, providing the Fed's rate-hike hawks a justification for doing so.

BTC at first reacted positively to the CPI statistics before turning around after seeing the core inflation figures. In reaction to the CPI Report and the overnight FOMC meeting minutes, the likelihood of a 25-basis point Fed interest rate rise somewhat decreased.

The likelihood of a 25-basis-point interest rate increase decreased overnight from 72.9% to 65.2%, according to the FedWatchTool.

The FOMC meeting minutes caused a dip in the CPI Report, but BTC avoided a prolonged reversal. Bullish talk of pausing the economy contrasted with bearish BTC predictions of a financial crisis-driven slump.