Bitcoin Rebounds Above $97K Ahead Of CPI Release – What To Expect
Bitcoin has started the week with significant volatility, demonstrating the unpredictability of the market. After a steep 6% drop that saw prices hit new lows around $89,100, BTC staged an impressive recovery, surging 9% to regain $97,000 levels. This rapid rebound highlights Bitcoin’s resilience and investor caution amid uncertain market conditions.
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Cryptocurrency markets will now turn their focus to today’s Consumer Price Index (CPI) report, a key economic indicator that will provide insights into inflation trends. Expectations are leaning toward a possible rise in inflation, a scenario that could significantly impact Bitcoin’s price trajectory as investors evaluate its role as a hedge against economic instability.
Top analyst Jelle weighed in on the current market dynamics, sharing technical analysis that suggests Bitcoin may encounter “a period of bumpy conditions” before finding a smoother path higher. Jelle said the current consolidation phase could set the stage for a bullish continuation once inflation data and market reaction stabilize.
With Bitcoin hovering near key resistance levels, the results of the CPI report will be crucial in determining whether Bitcoin can sustain its price Recovery or facing new pressures. Investors are bracing for a dynamic day ahead.
Bitcoin builds momentum amid volatility
Bitcoin is starting to excite bulls as recent price action points to potential strength. The cryptocurrency exhibits a classic trend reversal pattern, characterized by high volatility, huge trading volume, and a quick flash crash followed by a swift recovery. This combination of factors often precedes major price moves, and many investors are now becoming optimistic about Bitcoin’s prospects.
Market participants braced for a volatile trading day with the Consumer Price Index (CPI) report set to be released later today. The report provides insights into inflationary trends that could significantly impact Bitcoin’s price trajectory.
Top analyst Jelle shared a technical analysis of X, highlighting Bitcoin’s return to the $97,000 level as a promising development. Although Jelle expects volatility to persist following the report, he still believes BTC will continue to climb in the coming weeks.
The broader macroeconomic backdrop adds to the uncertainty. As President-elect Donald Trump prepares to be inaugurated on January 20, markets face fear and uncertainty. This political shift has heightened investor caution, further impacting Bitcoin’s movements.
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Despite these challenges, the resilience Bitcoin has shown in recent days supports the bullish case. If Bitcoin maintains its upward trajectory, it could pave the way for significant gains as economic and political events unfold in the coming weeks.
Price remains near $97,000
Bitcoin has rebounded 9% from its recent low of $89,164 and is currently trading at $97,000. This surge indicates new bullish momentum, but BTC now faces serious challenges as it tests the 4-hour 200 moving average at $97,400. This technical indicator is often viewed as a key gauge of short-term strength and trend direction.
A successful recovery and stabilization above this level could serve as a springboard for Bitcoin towards and possibly beyond the psychological milestone of $100,000. The move is likely to further fuel market optimism and reinforce claims that a strong bullish trend is resuming.
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However, the situation remains delicate. Losing support at $95,500 could signal diminishing bullish momentum and open the door for further corrections. In this case, Bitcoin could retest areas of lower demand, which could shake investor confidence and prolong the current consolidation phase.
Featured image from Dall-E, chart from TradingView
