Bitcoin Skyrockets Ahead of ETH Merge and US CPI Release

Bitcoin Skyrockets Ahead of ETH Merge and US CPI Release

2022-09-13 • Updated

Bitcoin is trading above $22 000 on Tuesday as it continues a week-long rally ahead of the US inflation data and a highly anticipated Ethereum network upgrade.

After falling below $19 000 on Wednesday to its lowest level since June, Bitcoin has rallied around 20%.

Bitcoin’s advance is also related to winning last week for US stocks. Bitcoin has been closely correlated to equity markets, particularly the Nasdaq (US100), and often follows the tech-heavy index.

Crypto investors are looking ahead to the August consumer price index report, scheduled to be released Tuesday. They want to see the direction inflation is going, which could give hints about the Fed’s future monetary policy decisions.

Meanwhile, the Ethereum network will complete a long-awaited upgrade called the Merge on September 15. The upgrade will transform the Ethereum blockchain from a proof-of-work to a proof-of-stake model. The update should significantly reduce the amount of energy required for the network to operate, decrease fees, and increase scalability.

Why should we concern?

First, "ETH merge" Google requests are on the rise. At the same time, "buy ETH" requests are at their two-year lows, which is quite a negative factor ahead of the vast update. The community either doesn’t believe in the success, or they are following the "buy the rumors – sell the news" rule and waiting for the massive dump after the merge.

eth merge.jpg

The second negative factor comes from history. Few people remember, but a similar event occurred in the bear market of November 2018, after which Bitcoin fell from $6000 to $3000. Back then, Bitcoin Cash split into Bitcoin Cash and Bitcoin SV networks.

bitcoin price crash.png

Nowadays, Ethereum is the most popular blockchain among developers. Therefore, ETH might drop if any issues appear during the merge, and many other projects built on the Ethereum blockchain might follow it. This dump may cause a wave of liquidations, and the whole market may crash.

However, we believe it isn’t what will happen, and a possible plunge will be just a correction ahead of the huge crypto market rally.

How might CPI affect the crypto market?

The crypto market always shows a great reaction to the US CPI release. If today's data is lower than expected -0.1%, the crypto market could take a breath of fresh air and increase. On the other hand, higher-than-expected CPI might return Bitcoin to under $20 000.Technical analysis

BTCUSD, Daily chart

bitcoin technical analysis.png

BTCUSD is trading close to the global descending trendline. If today’s CPI is lower than expected, the price might break above this resistance and keep moving towards $25 300 and the main target of $28 000.

However, if today’s CPI is higher than expected, BTCUSD might return to $19 000, and in this case, with a high probability, a breakdown of this level is possible and a further decline towards $12 000 after the Merge.


ethereum technical analysis.png

Ethereum is also trading close to the global descending trend line. If the price breaks above $2000, you might buy ETHUSD with the target at $2500.

In the pessimistic scenario, the price will bounce off the global descending trendline and decline to the $800 - $1000 support range.

We’ll be looking deeper into the Japanese economy. Subscribe to the @FBSAnalytics Telegram Channel, where I post more daily trade ideas!



How Deep Can the 'DIP' Get?
How Deep Can the 'DIP' Get?

Over the last few weeks, a lot has happened in the crypto space and all does not seem to be well anymore for many. Usually, the word 'dip' refers to a slight retracement in price before the continuation of a trend, however, what we've seen so far on several crypto charts suggest otherwise. In this article, we examine the grounds for the resurrection of three of the mainstream cryptocurrencies

Is it safe to buy Bitcoin now?
Is it safe to buy Bitcoin now?

Bitcoin could be a potential haven for Russian oligarchs seeking to avoid sanctions, as there will be no censorship on the Bitcoin network and cryptocurrency transactions. Russians may have trouble converting their money back to fiat, yet the cryptos could act as a robust store of value for a significant part of holdings that do not need to be liquid.

Latest news


For those who may be unfamiliar with Price Action trading, the horizontal arrows represent areas where the market structure was broken. As you can see in the scenario above, price broke below the previous low at the two marked instances

TRADE IDEA: Technical Breakdown of Top Cryptos
TRADE IDEA: Technical Breakdown of Top Cryptos

Let's start off with a look at the Daily timeframe on Bitcoin. We currently see price reacting to the rally-base-rally demand zone between the 15,600 - 14,300 price area. Price also seems to have found support off the trendline support as marked in the image above. Interestingly, this means the overall bias on BTCUSD is Bullish.

CBDC: Technology of the Future or Dystopia?
CBDC: Technology of the Future or Dystopia?

Central Bank Digital Currencies (CBDCs) are virtual national money. The idea of ​​creating such currencies came to the authorities after the success of cryptocurrencies, which also exist only in digital form.

Deposit with your local payment systems

Feel the Team Spirit

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.


A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera