Bitcoin price climbs to $17,565 ahead of tomorrow’s CPI report

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(Kitco News) – It was an overall positive day for global financial markets as asset prices rose ahead of tomorrow’s Consumer Price Index, which many predict will show inflation continuing to fall after to have reached multi-decade highs in 2022.

The S&P, Dow and Nasdaq benefited from positive sentiment among traders on Wall Street, with all three indices ending the day well in the green, up 1.28%, 0.80% and 1.76% , respectively.

Data from TradingView shows that after holding support near $17,450 throughout Wednesday’s morning session, the price of Bitcoin (BTC) underwent a rapid afternoon drop and pump that saw it briefly drop to $17,320 before recovering to $17,565.

BTC/USD 4 hour chart. Source: Trading View

According to Kitco Senior Technical Analyst Jim Wyckoff, “The bulls have recently gained some upside technical momentum and are working on an incipient uptrend in price on the daily bar chart.”

With BTC price now above key 50-day moving average resistance, traders have begun to adopt a more positive outlook while simultaneously acknowledging that the possibility of further market decline remains a possibility.

This fact was mentioned in the latest market update from analysts Eight Global, who warned that CPI announcements “normally bring a lot of volatility and it is very risky to enter a position with a tight stop. “.

“Normally we see a cash rush on both sides and that could easily stop you,” analysts warned. “Looking at the 1-hour chart of Bitcoin, we can see that we are consolidating […] From a long position perspective, I would say the area around $16.9-17,000 is where you want to go.

Eight Global co-founder Michaël van de Poppe posted the following tweet showing what the price action might look like at the time of the CPI announcement and suggested that Bitcoin could hit $18,500 soon if the “IPC is beaten”.

As noted, #Bitcoin was expected to hold the zone around $17.3000, which it did.

In this regard, we probably continue to rally and then it depends on the CPI.

Most likely, given the current outlook, we temporarily correct around the CPI, before continuing.

If the CPI is beaten, tomorrow $18.5,000 pic.twitter.com/6tmxU3k07l

— Michael van de Poppe (@CryptoMichNL) January 11, 2023

A longer-term perspective on BTC’s current situation at the start of 2023 was provided by market analyst Rekt Capital, who posted the following annual chart tweet for Bitcoin, suggesting that Bitcoin is on the verge of make a breakthrough at some point in the next 12 months. at 24 months.

$BTC

If 2022 was full of pessimism, fear and doubt…

So 2023 should be full of optimism, hope and potential#BTC #Crypto #Bitcoin pic.twitter.com/3BxUHYTEvK

— Rekt Capital (@rektcapital) January 11, 2023

Mixed day for the altcoin market

Altcoin market performance was mixed on Wednesday as a handful of tokens charged higher while the majority traded flat or posted slight losses.

Daily performance of the cryptocurrency market. Source: Coin360

The biggest gainer of the day was Avalanche (AVAX) as the announcement of a partnership with Amazon Web Services sparked a 22% intraday rally for the Layer 1 protocol. Other notable performers included an increase of 13.15% for Voyager Token (VGX) and a gain of 8.72% for Illuvium (ILV).

The overall cryptocurrency market capitalization now stands at $862 billion and Bitcoin’s dominance rate is 39.2%.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. This is not a solicitation to trade commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no responsibility for loss and/or damage resulting from the use of this publication.

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