- Bitcoin price soared to as high as $18,000 with the announcement of the fresh CPI rates which were unusually low
- The BTC bulls quickly jumped into action and dragged the star token above the bearish zone at the moment.
The current week is considered to be extremely volatile as multiple events were lined up that could have a major impact on the crypto space. The CPI data, FOMC, SBF’s trials, etc and a couple more, were set to impact the Bitcoin price to a large extent. As expected, the BTC price broke out of consolidation to mark new monthly highs at $18,000 in no time.
However, the bears who were waiting for the opportunity to cash out dragged the price slightly lower.
Besides the price surge, the dominance also rose notably marking levels above 41% which manifested the possibility of ease in the bearish market trend. Besides, the other altcoins, like Ethereum, Ripple, Cardano, etc also registered significant growth but slightly less compared to BTC.
The BTC price was trading within a descending triangle, largely considered bearish and hence assumed to mark new lows before the end of 2022. However, the recent price jump, broke above the bearish pattern, signaling the revival of a bullish trend. Presently, the token is testing the crucial 50-day MA levels, surpassing which may ignite a notable upswing towards the 200-day MA levels close to $21,000.
Read more: Top Crypto Price Prediction 2023
The CPI rates have been impacting the crypto space lately as the tokens witnessed quick jumps followed by a notable correction. The present level of 7.1% after slashing from 7.7% has reached the lowest level in the past 6 months, indicating ease in the markets. Moreover, following the CPI, the FOMC meeting is also scheduled some moments from now.
While the crypto markets had a sigh of relief with lowered CPI rates, the FOMC meeting is also expected to offer a bullish push for the Bitcoin price. Matthew Dixon, the founder of Evai crypto rating, believes that the FOMC may maintain a ‘dovish’ comment which is good for the BTC price.
All eyes on the #Fed interest rate decision. 0.5% increase expected BUT its Economic Projections that will be key to the direction of the markets. With CPI lower than expected yesterday we may be in for some dovish comment which is good for #Btc #Eth and #Crypto in general #Evai pic.twitter.com/OSlcUr2F8l
— Matthew Dixon – CEO Evai (@mdtrade) December 14, 2022
Besides, the BTC trades opt for playing it all safe as the future interest remains flat at $8.25 billion while funding rates remain negative. A negative rate here indicates that the traders are paying the bulls to keep their positions open while the leverage remains negative.
Therefore, considering the present market conditions, BTC price is expected to remain highly volatile for the next few days. Apart from this Japan, European Union and the UK will roll out their respective interest rates this week. But all eyes presently are on Fed Chair Jeremy Powell’s speech as the language used could determine the phase of the crypto space.
Read more: Bitcoin Price Prediction
Bitcoin marks history with a 43% monthly surge in February 2024.
Bitcoin price has surged just under 50% in February 2024 alone!