Bitcoin price finally broke through the critical $18,000 mark for the first time in two months and it continues to rise. Rate rises by the US Federal Reserve are expected to slow in 2023 as inflation falls.
Bitcoin and other cryptocurrencies increased on Friday, extending their gains. After languishing at low levels for weeks, digital assets have surged, with crypto traders more optimistic that the worst of the bear market has passed.
The price of bitcoin has risen by more than 10% in the previous 24 hours, as Wall Street economists predict a reduction in the Consumer Price Index in December (CPI). The real reason for today’s Bitcoin price rally, though, is the technical breakout. Also, the US dollar index (DXY) fell below 103 for the first time in months.
The Bollinger Bands indicator, as previously mentioned, was producing narrow bands in the weekly timeframe. As a result of the lessened volatility, traders avoided trading. In addition, it has prompted the Bitcoin price to remain over $16.5K and surge past $17,500 in recent days.
As expected, the termination of the Bollinger Bands Squeeze resulted in a 5% increase in the Bitcoin price in the last 24 hours. Furthermore, it suggests that the BTC price will continue to rise and will soon reach $20,000;
The RSI has reached overbought territory and is hovering around 76. As a result, the Bitcoin price is showing strength and should continue to rise in the coming weeks. The exponential moving average (EMA) also suggests a bullish price trend in the next few weeks as the 20-EMA approaches.
Related: Now Is a Good Time to Buy Bitcoin?
Another reason for Today’s Bitcoin Price Rally is optimism about the economic situation. Encouragement in the U.S. jobs report a week ago and consumer-price index data on Thursday have fueled optimism that inflation is decreasing, allowing the Federal Reserve to slow its aggressive rate hikes. Tighter financial conditions have reduced demand for risky assets, harming both stocks and cryptos.
“When it comes to macro shifts and pivots, bitcoin and crypto tend to run ahead of stocks, so we’re undoubtedly seeing indicators of this happening right now,” said Les Borsai, chief strategy officer at crypto asset manager Wave Financial. “It appears that more and more investors are gradually allocating more capital to Bitcoin and cryptocurrency. This is expected to continue, if not increase.
Bitcoin Value Following the December CPI release
Wall Street banks predicted the CPI to fall in December, as energy prices contributed the most to the slowdown. From November to December, gasoline prices fell by approximately 12%.
Banks like Bank of America, JPMorgan, Morgan Stanley, and Goldman Sachs predict the CPI to be 6.5%.
Crypto researcher Michael van de Poppe believes the CPI will continue to fall, but that the dramatic reduction predicted by other analysts is unlikely. He anticipates that the CPI will be 6.6% or 6.7%. Following that, the crypto market may have a dip before continuing its ascent.
For more articles visit : Cryptotechnews24