Today's crypto market has now turned their focus on Consumer's Price Index (CPI) report with a key economic indicator providing insights on inflation trends. Many expectations are leaning towards potential rise in inflation. This scenario could heavily influence the price trajectory of Bitcoin as investors assess its role against economic stability.
Bitcoin has kicked off in last week highlighting the unpredictability of the market. After a sharp decline of 6% that took the market price around $89,100, Bitcoin showed an impressive recovery surging 9% rebounding to $97,000. This rapid increase highlights the recovery of Bitcoin and investors being cautious about the market's unpredictability.
Jelle, the top analyst weighed on the current market dynamics by sharing a technical analysis report that suggests Bitcoin is likely to face difficult conditions for a while before finding a smooth path. According to Jelle, once the the inflation and market settle, there will be a smooth continuation of current consolidation phase.
Since, Bitcoin is facing critical resistance levels, the CPI report's outcome will be crucial to determine whether Bitcoin will face renewed pressure or can sustain its recovery. That's why investors are preparing to face a dynamic day ahead.
Bitcoin has started to excite as recent prices shows potential strength. The cryptocurrency has showed a classic trend reversal pattern of price changes with significant trading volume, sudden price drops, and quick recoveries after those drops. These combination of factors often precedes major price swings from which many investors are now turning optimistic about Bitcoin's outlook.
With CPI report set to be released later today, marketers are bracing for a volatile session. This report has offered insights into inflation trends which could influence the price trajectory of Bitcoin.
The technical analysis report shared by top analyst Jelle, highlighted that Bitcoin's reclaim of the $97,000 is a promising development. As the report comes out, he expected volatility to persist, but Jelle remained confident that Bitcoin will continue to climb higher in the weeks ahead.
As Donald Trump prepares for president-elect and assume for office on January 20, the market faces both fear and uncertainty. This political transition has made investors cautious about further influencing Bitcoin's movements.
Despite challenges, the resilience shown by Bitcoin in recent days supports the idea that their price might continue to rise. If Bitcoin maintain their upward price trajectory, it could pave the way for substantial gains as economic and political events may unfold in the upcoming weeks.
Bitcoin has started trading at $97,000 following an impressive 9% recovery from $89,164. This surge shows renewed price increase momentum, but Bitcoin now faces a critical challenge after testing 4-hour 200 moving average scale level at $97,400. Reclaiming successful stabilization above this level could make Bitcoin to push forward by potentially surpassing the $100,000 psychological milestone. This step could likely fuel the market optimism further and reinforce the narrative of resuming strong price increase.
However, this situation remains delicate. Losing support at $95,500 could weaken price increasing momentum and opens the ways for a deeper correction. In that case, Bitcoin could retest for lower demand zones, which might put some stress on investor confidence and extend the current consolidation phase.
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