Bitcoin price nears 3-week high as trader says CPI below 7% could see $19,000

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Bitcoin (BTC) traded closer to $17,000 on Jan. 7 after the first week of year-end trading saw a higher spike.

BTC/USD 1-day candle chart (Bitstamp). Source: TradingViewAll eyes on the CPI

Data from Cointelegraph Markets Pro and TradingView tracked BTC/USD as it briefly broke above $17,000 the previous day.

The pair had seen flash volatility on the back of fresh economic data out of the US, which nonetheless faded to leave the key level unchanged as resistance.

Nonetheless, the brief rise provided the highest Bitcoin price since December 20, 2022.

Reacting, market participants continued to view next week’s consumer price index (CPI) as a key potential catalyst for risk assets.

Unemployment will pick up in the coming months. Yields will fall off a cliff if the CPI is low, Michal van de Poppe, founder and CEO of trading firm Eight, wrote in part of a January 6 summary tweet.

The relief rally is near.

It finally looks like BTC is ready to break out of the base $16,000-$17,000 range it has been stuck in for the past few weeks. Start the squeeze, hopeful trader Kaleo continued.

If CPI data shows inflation falling faster than expected, it could provide fuel for a trip to multi-month highs near $19,000, added futures trader Satoshi Flipper.

BTC/USD annotated chart. Source: Satoshi Flipper/ TwitterData Reveals the Extent of On-Chain Losses

Zooming out, fellow trader and analyst Rekt Capital joined the growing consensus on the current narrow trading range on BTC/USD forming the next macro lower zone.

Related: $16.8,000 Bitcoin Is Trading Below This Key Trendline More Than Ever

The current BTC price action will likely feature as a large group in the formation of the bear market’s lower accumulation range, he determined.

In another demonstration of the pain already endured by hodlers, on-chain analytics firm Glassnode showed that Bitcoin saw its second-largest cap pullback ever.

The realized cap describes the overall price at which the supply of BTC last moved, and its decrease reflects realized losses on the sale.

“The 2022-23 Bitcoin bear market saw the -18.8% realized cap drawdown, the second largest in history, and eclipsed only by the 2011 bear pico bottom,” Checkmate commented, Glassnode’s lead analyst on the channel. a graph.

“Investors weathered a total of $88 billion in net realized losses.” Annotated chart of Bitcoin’s cap pullback. Source: Checkmate/Twitter

The views, thoughts and opinions expressed herein are the sole authors and do not necessarily reflect or represent the views and opinions of Cointelegraph.

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