Bitcoin bulls have taken the helm, at least for a short time. With a 24-hour plus of over 10 percent, the Bitcoin price has crossed the 24,000 US dollar mark. At press time, the cryptocurrency is trading at $24,704.
The Bitcoin price has thus successfully torn the bullish price targets from last week and is now targeting the resistance area between US$ 24,925 and US$ 25,342. If the breakout continues successfully here, one can cautiously plan a further increase to the area of 26,200 US dollars.
Bitcoin course rally: These are the reasons
One of the reasons for this price rally could have been the release of the final US consumer price index on February 15th. It was announced that the US inflation rate fell in January for the seventh month in a row. Consumer prices rose by 6.4 percent compared to January, it was announced yesterday from Washington.
This is the smallest increase since October 2021. Nevertheless, originally the news was not quite as good as expected. Because economists had expected a stronger decline.
The forecasts made by the EU Commission on February 13 are also likely to have contributed to a positive mood. So was known that the eurozone economy did not contract in the fourth quarter of 2022, despite expectations to the contrary. For 2023, higher growth (0.9 percent) than originally thought (0.3 percent) is expected.
Short sellers liquidate positions
How apart data from glass node suggest there was a high level of short position liquidation over the course of the last day. According to the data, over $33 million in bitcoin short positions were liquidated just before the sharp rise.