- Bitcoin price rose by 7% amidst the United States Consumer Price Index data release.
- According to the latest CPI metrics, inflation fell by a small margin last month.
- BTC shows potential for a rally toward $19,000 if market conditions persist.
Bitcoin price recent uptrend move is stirring many conversations about cryptocurrencies, risk-on assets, and inflation. As the United States Consumer Price Index(CPI) bares hope globally, investors are jumping into the crypto market to place their bet on Bitcoin’s future trajectory.
Bitcoin price gets a bid
Bitcoin price soared by 7% on December 13, printing a new monthly high at $18,000. On the Volume Indicator, the peer-to-peer digital currency shows the trading day at $256,000 worth of transactions, a relatively normal figure throughout the fall. The Relative Strength Index is near a crucial resistance zone after climbing out of extremely oversold territory due to the sell-off on November 9.
Keeping these factors in mind, Bitcoin price will have more work to do to project a much anticipated Santa Rally. The BTC price spike is likely to have come from the recent United States Consumer Price Index release that showed inflation tapering from October’s 7.7% to November’s 7.1%.
Throughout the year, BTC has witnessed several market fluctuations of over 10% during CPI release dates, but the fluctuations usually stabilize and return to normal trading range prices within 24 hours. Although the CPI’s tapered outcome is an optimistic gesture (being that The Federal Reserve uses the CPI data to address inflation through interest rates), there is still a coherent risk in aiming for grandiose targets.
BTC/USDT 1-Day Chart
This thesis supports the BTC’s attempt to rally higher with conservative targets to breach in the future. A Fibonacci retracement tool surrounding November’s price action shows two key levels at $18,245 and $18,962. If the bulls can maintain support above the 38.2% retracement level at $17,556, a rally toward the aforementioned targets will be a rewarding short-term trade. A hike into the 61.8% Fib level at $18,962 creates a 7% uptrend scenario for bulls.
Invalidation of the bullish thesis would arise if the previous swing low within the prior range from November were breached. A tag of the $16,935 low could promote a bear strike targeting November’s market bottom at $15,476. The BTC price would decline by 14% if the bearish scenario played out.