Bitcoin (BTC) has gained momentum to break above $19K after falling to lows of $18.3K after US inflation data was released on Oct 13.

Market analyst Ali Martinez believes that the leading cryptocurrency should stay above $19,200 to reduce selling pressure because this is a significant level. The he pointed:

“Approximately 2.5 million addresses bought almost 1.5 million BTC at $19,200. The longer Bitcoin continues to trade below $19,000, the more pressure these investors will feel to get out of their long BTC positions to reduce losses. Consequently, accelerating downward pressure.”

The United States Bureau of Labor Statistics (BLS) released the latest inflation figures with the Consumer Price Index (CPI) for all urban consumers growing 0.4% in September, Blockchain.News reported.

As a result, a broad market reaction emerged, sending chills down the crypto market, with Bitcoin falling to lows of $18,319.

Crypto information provider Santiment stated:

“Thursday has been an expected volatile day after the inflation data was released. Bitcoin fell to $18,300, its lowest price level since September 21. However, as traders were in the midst of stopping the bleeding, BTC and the SP500 quickly recovered.”

Source: Santiment

Despite the fact that Bitcoin’s social dominance has shrunk based on market swings, the leading cryptocurrency surged 3.38% over the last 24 hours to hit $19,623 during intraday trading, according to CoinMarketCap.

Since some traders have been eyeing short-term pumps, this has also caused the social dominance of BTC to decline. Santimento explained:

“Traders are chasing short-term pumps right now to save losses. Weak hands have abandoned cryptocurrencies in 2022, and long-term traders are waiting for Bitcoin to start taking the spotlight again. When BTC social dominance is high, prices tend to go up.”

Source: Santiment

The US Federal System has resorted to interest rate hikes to rein in runaway inflation, which has been detrimental to the cryptocurrency market. With the latest CPI data coming in higher than expected, it remains to be seen what move the Fed will take next month.

Image source: Shutterstock