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The cryptocurrency market rebounded on the 13th despite the shock of the U.S. Consumer Price Index (CPI). BeInCrypto reported that the total cryptocurrency market capitalization increased by $26.87 billion as the market interpreted the CPI rise not as structural inflationary pressure but as a temporary factor due to energy prices.
According to BeInCrypto, the total cryptocurrency market cap rose 1.01% on the day, reaching $2.67 trillion. The market is showing a trend of retesting the $2.72 trillion upper bound, which has seen resistance twice since early May. However, a reattempt to break above $2.72 trillion is only possible if $2.56 trillion is maintained; if that level breaks, $2.47 trillion and $2.39 trillion are presented as the next support levels.
The backdrop for this rebound was the interpretation of the April U.S. Consumer Price Index. Although the headline CPI recorded 3.8%, exceeding expectations, the market noted that over 40% of the increase came from energy, with gasoline prices rising 28.4% year-over-year. BeInCrypto reported that this composition maintained expectations for interest rate cuts, and a potential Beijing summit between President Trump and Chinese President Xi Jinping emerged as a potential catalyst for easing oil prices.
Bitcoin (BTC) traded up 0.91% at $81,214 on the day, moving within an upward channel that has persisted since late March. Bitcoin rebounded from the lower end of the channel at $79,840, which it tested on May 12, and showed a trend of attempting to break through the upper resistance again. BeInCrypto analyzed that if a Trump-Xi Jinping meeting were to act to lower oil prices, it could become a macro catalyst for Bitcoin to break through the channel's resistance line.
Technically, Bitcoin needs to surpass the Fibonacci 0.236 retracement level of $84,042 for a bullish confirmation. If a daily close is formed above this price, $86,642 and $90,844 are presented as the next target zones. Conversely, if the closing price forms below $79,840, the upward channel could break, increasing the risk of a decline.
A rally in privacy coins also led the market rebound. Zcash (ZEC) rose over 5% on the day, trading at $584, and led the rebound in the privacy sector. Zcash is testing the upper boundary of a bull flag formed after a 104% surge from April 29 to May 9. BeInCrypto analyzed that with selling volume compressing and buying volume increasing again, technical breakout momentum is forming.
If Zcash forms a daily close above $592, a bull flag breakout will be confirmed, with the first target price set at $618. Subsequently, the Fibonacci 0.618 retracement level of $744 and a higher upside target of $869 were mentioned. Conversely, if the closing price forms below $541.31, the pattern could weaken and enter a downward consolidation phase.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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