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Bitcoin has managed to reclaim the 100,000 USD level while the US dollar is losing ground due to better-than-expected inflation data from the US. The market had apparently feared that the Consumer Price Index (CPI) data would disappoint again and show higher-than-expected inflation.
But that didn’t happen, which gave Bitcoin a significant boost yesterday.
Bitcoin is rising sharply
Thanks to the positive inflation data, the Bitcoin price has risen significantly. After a preliminary low of under $90,000, the price is now well above that again at the current level of $100,000.
BTC Good CPI print. Should clear the inflation fear narrative for a bit.
Diagonal trend line test getting close. DXY & Yields saw a solid move down. Stocks strong.
NY Open in ~30 minutes so let’s see how we do the rest of the day.
The positive inflation data somewhat alleviates fears about inflation that have been growing in recent months as inflation has stagnated at around 3%. However, the new data now shows a cautious cooling of inflation, which is good news. This could give the US Federal Reserve room to cut interest rates in the medium term.
Do we have nothing to fear anymore?
Basically, it is normal for there to be phases of fear even in bull markets. On Wall Street, it is not for nothing that they say that bull markets climb a “wall of fear”. This has been clearly noticeable in recent weeks.
However, we should not get too excited too soon. This was a good reading compared to the negative expectations, but one swallow does not make a summer. Before jumping to conclusions, we should first wait for a series of positive inflation data.
In addition, bond yields in the US market remain high, which could lead to weaker economic growth in the long term. What impact this will have on the market remains to be seen.
However, overall, the overall picture remains bullish and positive for Bitcoin. Everything points to a continuation of the bull market, although alternative scenarios cannot be ruled out.
Bitcoin Price Analysis
Bitcoin is currently trading in a consolidation phase after a previous upward movement. The market is testing key support levels, and the next move will depend on whether bulls can defend these zones.
Technical Analysis:
- Current Price: $99,428
- Support & Resistance:
- Key Support: $99,200, with additional levels around $97,600 and $96,400.
- Key Resistance: $100,400 – $100,800.
- RSI (14, close): 30.45, indicating potential oversold conditions.
- Volume: Stable, suggesting the market is looking for direction.
- Heikin Ashi Candles: Show a slight downtrend but not a sharp sell-off.
Trend & Strategy:
- Bullish Scenario: If BTC holds $99,200, we could see a rebound towards $100,400.
- Bearish Scenario: A drop below $99,200 may push BTC down to $97,600 and $96,400.
- Trading Strategy:
- Short below $99,200, targeting $97,600.
- Long if BTC rebounds from $99,200, aiming for $100,400.
Conclusion:
Bitcoin is at a decision point, testing key support. The next move will depend on whether buyers step in or if further downside follows. Watch for volume confirmation before making a trade! 🚀📉
- XRP breaks 3 USD and reaches its highest level in 7 years - January 16, 2025
- Bitcoin price rises to 100,000 USD thanks to positive inflation data from the USA - January 16, 2025
- Trump’s inauguration is approaching, but crypto promises may take a while - January 14, 2025
