BTC Volatility Analysis for CPI, 14th January 2020

Data Analysis

The data released by Bureau of Labor Statistics for Consumer Price Index on 14th January, 2020 has come in at a decrease to -0.1% for December 2019. Compared to the previous release for November 2019 at -0.1%, we can see that prices & inflation is decreasing at the same rate month over month.

To see the impact and volatility of BTC's price during the CPI release, we will first observe the difference in volume and price changes on the 4-hours chart, followed by the 15-minutes chart. Change in prices will be be determined by the high and low prices instead of the opening and closing prices.

4-Hours Chart Analysis

In the period prior to the release, the trading volume was 16,595 BTC with prices swinging between 8,470.00 and 8,625.37, representing a swing of 1.80%. Subsequently, the trading volume increased significantly by 105% to 33,998 BTC. Price action ranged from a low of 8,520.00 to a high of 8,775.00, a significant difference of 2.91%

15-Minutes Chart Analysis

Analysing on a lower time frame to get a more accurate picture, 957 BTC in trading volume was observed prior to the data release. Prices ranged between a low of 8,521.05 to a high of 8,567.74, a 0.54% change. Immediately following, trading volume decreased by 18% to 782 BTC. At this time, Bitcoin hit a low of 8,526.00 with a high of 8,554.97, a change of 0.34%.

About Consumer Price Index

The Consumer Price Index (CPI) measures the monthly change in prices paid by U.S. consumers. The Bureau of Labor Statistics (BLS) calculates the CPI as a weighted average of prices for a basket of goods and services representative of aggregate U.S. consumer spending. The CPI is one of the most popular measures of inflation and deflation. The index is published monthly by the U.S. Bureau of Labor Statistics (BLS).