Bitcoin Down 2% To $71K, Faces 'Resistance' Says Trader Who Targets This Price For A Correction

Bitcoin BTC/USD is trading 2% down on the day, revisiting the $71,000 mark for the second time this week, with analysts predicting a potential correction for the crypto king.

What Happened: The U.S. reported higher than-expected Producer Price Inflation data, showing a 0.6% increase month-over-month for February, compared to the market's estimated 0.3% rise. This decline comes after Bitcoin prices reached their all-time high levels last night, surpassing $73,700.

The PPI index measures the change in the prices as goods leave the manufacturer and is an important indicator for broader inflation data.

In another development, the U.K. High Court ruled that Craig Wright cannot be identified as Satoshi Nakamoto, the creator of Bitcoin, and did not author Bitcoin’s white paper. The ruling clarified that he is not the individual who created the Bitcoin network, nor is he the author of the initial versions of the Bitcoin software.

Lastly, the ruling confirmed that Craig Wright did not use the pseudonym Satoshi Nakamoto during the period from 2008 to 2011.

Why It Matters: In the light of these developments, Bitcoin is experiencing a slight correction, with heavily-followed technical trader World of Charts tweeting:

$Btc#Btc Currently Facing Resistance If Bitcoin Corrected It Self It Can Test Lower Trendline Its Technical Outlook If We Got Correction Will Try To Catch Between 52-56k Area pic.twitter.com/LPTsV01IFX

— World Of Charts (@WorldOfCharts1) March 14, 2024

Another crypto trader, Rekt Capital, stated that “price discovery awaits” once the volatility resolves itself.

He added that when Bitcoin breaks its all-time high levels, prices not only enter an uninterrupted uptrend but also face significant upside and downside volatility.

What's Next: With markets no longer expecting rate cuts at the May meeting, data from the CME FedWatch Tool indicates a decrease to around 50% in the odds of lower rates.

In this scenario, concerns arise regarding whether macroeconomic factors will begin to impact Bitcoin prices.

Read Next: Bitcoin ETFs Post $684M In Net Inflows, BlackRock's IBIT Leads The Charge

Image created using artificial intelligence with Midjourney.