Bitcoin (BTC) rebounded from its lows around $36,165 to target $37,000 at the Wall Street open on November 14, following the release of the latest United States inflation data. The Consumer Price Index (CPI) for October showed slower-than-expected inflation, coming in 0.1% below market forecasts both year-on-year and month-on-month. The annual change was 3.2%, compared to the 4.0% for core CPI. The news positively surprised the stock market, with the S&P 500 rising 1.5% on the day. Bitcoin’s reaction was modest, revisiting an intraday low before rising towards $37,000 while still remaining in a range-bound condition.
Market analysts emphasized that Bitcoin’s current retracement is a standard and healthy part of a broader uptrend. They noted that bull market corrections are normal, and Bitcoin could see drawdowns of up to 20% from profit-taking or liquidations. Despite being down around 4% from the 18-month highs seen earlier in the month, Bitcoin’s price action continues to impress market participants, and analysts believe that corrections are essential for the overall health of the market. The general sentiment is that Bitcoin could experience deeper price corrections given its 120% year-to-date increase, and some analysts predict significant drawdowns before the April 2024 block subsidy halving event.