Shiba Inu Coin Price Dips Along Bitcoin As US CPI Data Comes In Hot
Highlights
- SHIB eyes immediately bounce back from confluence support at $0.0000093.
- CPI data comes is hotter than expected, suggesting that the Fed may need more time to plan for rate cuts.
- Dips could prove profitable in the crypto market now that hype surrounding the ETF is thawing.
Shiba Inu Coin price has lost 1.3% in the last hour to $0.0000094 during US business hours on Tuesday. Bitcoin price is also bleeding albeit slightly, trading below $49,200 after the release of the Consumer Price Index (CPI) data in the US.
Shiba Inu Coin Price, Bitcoin Tumble As CPI Increases
The latest data from the Labor Department show a spike in inflation, exceeding expectations. High shelter prices stood out with the CPI — a measure of the prices consumers pay for goods and services surged 0.3% in January, the Bureau of Labor Statistics announced on Tuesday.
Narrowing the outlook on a yearly basis, the CPI fell to 3.1% from 3.4% reported in December. Market watchers survey by Dow Jones anticipated a monthly surge of 0.2% alongside a 2.9% rise annually.
Core CPI, which excludes the unstable prices of food and energy, rose by 0.4% in January and matched the 3.9% annual increase from December. These figures were higher than the expected 0.3% and 3.7% respectively.
People who expected the CPI report to indicate inflation was slowing down are disappointed. This could explain the sudden dip in crypto prices led by Bitcoin below $49,000.
The hot CPI data could further dismantle expectations that the Federal Reserve will begin rate cuts soon. As it stands, the Fed will need more time to plan for the anticipated rate cuts likely to start in July.
As for crypto, the hype surrounding the upcoming Bitcoin halving and growing interest in the spot ETF arena could weather the storm, allowing for immediate recoveries, starting today.
Read also: Crypto Price Predictions for February 13 As Market Recovery Accelerates: BTC, HNT, ORDI
Shiba Inu Coin Price Prediction: Is It A Good Time To Buy The Dip?
Shiba Inu Coin is down to $0.0000094 after climbing to $0.0000097 on Monday and early Tuesday. The Relative Strength Index (RSI) backs the unforeseen correction as it slides below the midline in the neutral region.
The confluence of the 200-day Exponential Moving Average (EMA) and the 50-day EMA (the purple and red lines on the chart) at $0.0000093 serves as SHIB’s immediate support.
Should it holds and the meme coin starts to rebound, traders and other speculators will consider buying the dip to prospect on the likely push past $0.00001.
However, Shiba Inu Coin is not out of the woods yet because losing the confluence support might trigger another dip to $0.000009. Investors can treat dips as opportunities to buy until the range low support at $0.000009 shatters and exposes SHIB to the risk of falling to $0.000008.
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