<em><strong>The BTC price chart shows a bullish continuation possibility this year despite the sharp fall at the recent release of CPI data. </strong></em>

On the weekly time frame, the <a href="https://www.cryptoknowmics.com/news/microstrategy-could-raise-up-to-500-million-to-purchase-bitcoin/" target="_blank" rel="noopener">Bitcoin</a> (BTC) price action shows a double bottom at the $18850 support level. Given that the price has recovered twice from this level in the last three months, it serves as crucial base support. However, can the recent sell-off prevent Bitcoin holders from achieving their profits?
<h3>Key Points:</h3>
<ul>
 	<li>The Bitcoin price action shows a double bottom pattern in the weekly chart.</li>
 	<li>The reversal from the $18,85 level fails to sustain above the $21,875 mark.</li>
 	<li>The intraday <a href="https://www.cryptoknowmics.com/news/why-trading-volume-matters-in-crypto-investment/" target="_blank" rel="noopener">trading volume</a> in Bitcoin is $51.36 billion.</li>
</ul>
<img class="alignnone" src="https://s3.tradingview.com/snapshots/a/AbMNi4EH.png" alt="BTC/USD Price Chart" width="1834" height="842" />

Source - <a href="https://www.tradingview.com/x/AbMNi4EH/" target="_blank" rel="nofollow noopener">TradingView</a>
<h2>BTC Technical Analysis</h2>
Currently, BTC prices are dropping under unexpected selling pressure, as the most recent CPI data shows an 8.3% year-over-year inflation rate. Moreover, a 1% increase in interest rates now looks plausible in light of the dismal CPI figures.

As a result, the price of Bitcoin is down 6.6% today and is trading at $20,249. However, the volume activity is modest compared to the previous week of recovery. Additionally, the coin price reached a support level of $20K, which could help the purchasers fight back.

Therefore, if Bitcoin (BTC) maintains this support, the bullish thesis ought to be effective, as mentioned in our <a href="https://www.cryptoknowmics.com/news/btc-technical-analysis-will-bitcoin-break-above-21875/" target="_blank" rel="noopener">previous article</a>. However, today's candle closing is essential, and a breakdown below the $20600 mark will pull the prices back to the $18830 mark.
<h2>Is Bitcoin Failing As An Inflation Hedge?</h2>
Inflation and other adverse macroeconomic factors have diminished the appeal of Bitcoin (BTC). Like all other risky investments, BTC eventually succumbed to macroeconomic factors after winning multiple battles against inflation. Tyler Winklevoss, a co-founder of <a href="https://www.cryptoknowmics.com/news/gemini-launched-staking-for-matic-dot-sol-and-eth/" target="_blank" rel="noopener">Gemini</a>, believes this is because the asset is still in its infancy.

https://twitter.com/tyler/status/1569699032536055809
<h2>Technical Indicators</h2>
A bullish divergence in the RSI slope supports the completion of the double bottom pattern. Additionally, the MACD and signal lines are approaching the zero line, gradually increasing the bullish histograms. As a result, the signs continue to indicate a buying moment for Bitcoin.

Resistance Level - $22550 and $25000

Support Level - $20000 and $18850

BTC Technical Analysis: CPI Data Plunges Bitcoin To $20K

The BTC technical analysis shows a bullish continuation possibility this year despite the sharp fall at the recent release of CPI data. 

Vikram is a technical analyst with several years of experience in the crypto market &amp; Indian Equity and F&amp;O Segment. He loves to learn anything and everything related to finance. He possesses strong technical and analytical skills, which he leverages to acquaint our audience with upcoming price trends for different coins.

BTC Technical Analysis: CPI Data Plunges Bitcoin To $20K

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