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Bitcoin (BTC) to $15K after U.S. inflation data?

Friday evening's release of U.S. inflation data is anticipated to send shockwaves through the markets and could bust Bitcoin (BTC) out of its narrow trading range.

Bitcoin (BTC) is trading near $30,000, a level it has hovered around for over a month. While attempts to break beyond $32,000 are met with resistance, retailers also reluctant to allow the token to sink below $28,000.

However, the U.S. consumer price index (CPI) reading for May could alter this trend. Many of the BTC's losses in 2022 are driven by inflation fears, which are likely to prompt Federal Reserve rate hikes.

According to MarketWatch data, markets anticipate a reading of 8.1 percent, down slightly from 8.3 percent in April.

How will Bitcoin react to the knowledge of inflation?

The prevalent opinion holds that there are two significant outcomes for BTC. If the information released falls short of expectations, it may spark a reduced rally for the token on signs that inflation is slowing. Bitcoin is likely to surpass the $32,000 threshold in the near future.

But if the information is larger than anticipated, BTC is likely to decline drastically. The Federal Reserve is likely to interpret a high reading as a signal to raise rates even more, resulting in a risk-averse sentiment.

Given that the repercussions of the Russia-Ukraine conflict are still being felt, retailers may need to prepare for a higher-than-anticipated CPI. Downward pressure on BTC also suggests that losses in the token will likely exceed any positive aspects in the foreseeable future.

After April's CPI data, BTC dropped to as low as $26,000.

How low can Bitcoin possibly go?

Technical indications suggest that BTC is currently experiencing a descending triangle pattern. The token is more vulnerable to future losses than to future gains.

Crypto analyst @MarkYusko presents a worst-case scenario in which the longer BTC stays on this pattern, the more likely it is to drop to $15,000, a 50 percent decline from current levels.

Such a decline would also reduce BTC's value by about 80 percent from its record high of $68,000 in November.

A majority of 1,000 respondents to a poll conducted by Yusko anticipate a drop to $15,000, according to the results.

With over five years of experience covering global financial markets, Ambar hopes to apply this knowledge to the rapidly expanding world of crypto and DeFi. His primary interest rests in determining how geopolitical happenings can affect crypto markets and what this would mean for your bitcoin holdings. You can find him playing videogames or watching Seinfeld reruns when he is not browsing the Internet for the most latest breaking news.

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