Bitcoin price nears 3-week high as trader says sub-7% CPI may see $19K

1 year ago 108

Bitcoin (BTC) traded nearer $17,000 connected Jan. 7 aft the extremity of the year’s archetypal trading week delivered a spike higher.

BTC/USD 1-day candle illustration (Bitstamp). Source: TradingView

All eyes connected CPI

Data from Cointelegraph Markets Pro and TradingView followed BTC/USD arsenic it concisely passed the $17,000 people the time prior.

The brace had seen flash volatility connected the backmost of caller economical information from the United States, this nevertheless fading to permission the cardinal level “unflipped” arsenic resistance.

Nonetheless, the little uptick delivered Bitcoin’s highest terms constituent since Dec. 20, 2022.

Reacting, marketplace participants continued to look to adjacent week’s Consumer Price Index (CPI) people arsenic a cardinal imaginable catalyst for hazard assets.

“Unemployment volition rally successful the coming months. Yields volition autumn of a cliff if CPI is low,” Michaël van de Poppe, laminitis and CEO of trading steadfast Eight, wrote successful portion of a summary tweet connected Jan. 6.

“Relief rally is close.”

“Finally looks similar BTC is acceptable to interruption retired of the $16K - $17K basal scope it’s been stuck successful the past respective weeks. Initiate the squeeze,” hopeful trader Kaleo continued.

Should the CPI information amusement ostentation decreasing quicker than expected, meanwhile, it could supply substance for a travel to multi-month highs adjacent $19,000, futures trader Satoshi Flipper added.

BTC/USD annotated chart. Source: Satoshi Flipper/ Twitter

Data reveals grade of on-chain losses

Zooming out, chap trader and expert Rekt Capital joined the growing consensus implicit the existent constrictive trading scope connected BTC/USD forming the adjacent macro bottommost zone.

Related: $16.8K Bitcoin present trades further beneath this cardinal trendline than ever

“The existent BTC terms enactment volition apt fig arsenic an important clump successful the enactment of the Bear Market bottommost Accumulation Range,” helium determined.

In a further objection of the symptom already being endured by hodlers, on-chain analytics steadfast Glassnode showed that Bitcoin has seen its second-largest realized headdress drawdown.

Realized headdress describes the aggregate terms astatine which the BTC proviso past moved, and its alteration reflects realized losses from selling.

"The 2022-23 Bitcoin Bear Market has seen the Realized headdress drawdown by -18.8%, the 2nd largest successful history, and eclipsed lone by the pico-bottom of the 2011 bear," Checkmate, Glassnode's pb on-chain analyst, commented alongside a chart. 

"Investors person weathered a full of $88 Billion successful Net Realized losses."
Bitcoin realized headdress drawdown annotated chart. Source: Checkmate/ Twitter

The views, thoughts and opinions expressed present are the authors’ unsocial and bash not needfully bespeak oregon correspond the views and opinions of Cointelegraph.

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