Bitcoin Hits Two-Month High of $19,120 as Inflation Continues to Moderate

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(Kitco News) – Things have improved markedly for the cryptocurrency market over the past week, as Bitcoin saw its fourth straight day of gains on Thursday following the much-anticipated price index report at consumption (CPI) largely in line with expectations and showed that inflation continues to moderate .

The stock market was off course after the release of the CPI report as investors saw it as a sign that the Fed could potentially begin to wind down its rate hike program. As markets closed in the United States, the S&P, Dow and Nasdaq all ended in positive territory, up 0.34%, 0.64% and 0.64%, respectively.

Data from TradingView shows Bitcoin (BTC) bulls have harnessed the positive energy to push the crypto top back above $19,000 to hit a daily high of $19,120 and now looks set to continue higher as the top crypto registers its highest price since November 8.

BTC/USD 4 hour chart. Source: Trading View

Kitco’s senior technical analyst Jim Wyckoff noted that Bitcoin’s rally, which began late Wednesday evening, gave the bulls “the upward technical momentum amid an upward trend in nascent price in place on the daily bar chart,” which Wyckoff suggested indicates “always more to the upside in the near term.

“Prices this week have also pushed just above key resistance at the 50-day moving average, which is another bullish signal,” Wyckoff concluded.

While many on crypto Twitter agreed with Wyckoff that things had indeed turned bullish, others were quick to point out that Bitcoin has simply returned to the range it was in before the outbreak. collapse of FTX and still has a long way to go before breaking out of bear market territory.

Market analyst Don Alt posted the following tweet suggesting that it is now the bears turn to experience choppy price action moving against them and noted that he will not accept the fact that the trend reversed until Bitcoin broke above $30,000.

Technically, in my mind, anything below $30,000 is just a bearish rally.

If you’re a bear and ignore the $30,000 possibility, I think you’re going a little blue-eyed.

We can just nuke but there’s a nonzero chance of retesting those levels IMO pic.twitter.com/IWtJeC4G5i

— DonAlt (@CryptoDonAlt) January 12, 2023

And for those looking to wave caution aside and follow this rally, market analyst Caleb Franzen posted the following tweet highlighting a metric that suggests this could be a bad move as Bitcoin’s price could soon enter another downtrend.

Bitcoin’s 60-day (2-month) stochastic has reached the upper level, a signal that has only flashed twice during this bear market.

In previous signals, the rally quickly faded and the price fell.

Hope this time is different! It is always important to recognize the risk. pic.twitter.com/aUKqTN5l73

— Caleb Franzen (@CalebFranzen) January 12, 2023

Bitcoin momentum sparks rally in altcoin market

Bitcoin’s rise was a boon for the altcoin market, as all but five of the top 200 tokens were in the green for the day, while a total of eighteen tokens saw double-digit gains.

Daily performance of the cryptocurrency market. Source: Coin360

Micromines (MICRO) was the biggest gainer on the day, with the NeoBank-focused project gaining 90.76% to trade at $0.0053, followed by a 23.56% rise for Aptos (APT) and a gain of 17.52% for Lido DAO (LDO)

The overall cryptocurrency market capitalization now stands at $906 billion and Bitcoin’s dominance rate is 40.1%.

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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