BTC Bulls Run For The Hills As Spanish Inflation Jumps

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The price of bitcoin fell more than 2% in European exchanges due to higher Spanish inflation. BTC traders are fleeing their positions as market turmoil is set to peak for the year. Expect to see Bitcoin price sell off at $21,969 looking for support.

Bitcoin (BTC) price plummets in European trade as volatile week kicks off with surprise Spanish inflation data. Markets were forecasting a decline of 5.7% to 4.97%. Instead, inflation jumped to 5.8%. This confirms what central bankers have been shouting over the past few weeks and what markets have ignored. Is reality catching up this week?

Bitcoin Price Set to Fall as Wave of Headwinds Emerges

The bitcoin price is making traders nervous, as this could be the toughest week of the first quarter of 2023. Not only are the US Federal Reserve, European Central Bank, and Bank of England set to release their forecasts and monetary policy , but also the US jobs report arrives on Friday. There couldn’t be more variables available to trigger circular saw moves on the chart. These events will make BTC harder to trade and could force many traders to end the week with a loss, depending on where BTC is trading at the official closing bell on Friday night.

BTC, meanwhile, received a false break and rejection against $23,878.62 and fell on Monday as the rally was pressured by profit taking. The Relative Strength Index (RSI) is also falling and should break through the overbought barrier in search of some consolidation. Expect BTC to drop to near $21,969 by the end of this week once all central bank events and the US jobs report are factored in.

BTC/USD daily chart

If the bulls held out against current events or if a central bank came out very supportive and signaled that inflation can only go down from here, markets would jump on that positive narrative. Expect a break above $23,878, and a jump higher would again confirm the rally moving away from this pivot level. Although $28,695 remains very high and high, the profit level will be back on the table at the start of this week.

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