The U.S. CPI data meeting market expectations has ignited a bullish surge in the cryptocurrency market, with Bitcoin leading the rally by reclaiming the $100,000 mark.
The prospect of a 25 basis points interest rate cut in the upcoming FOMC meeting has further fueled investor confidence. Coupled with strong inflows into Bitcoin Spot ETFs, BTC’s price action suggests promising momentum. But will it sustain this upward trajectory?
On the daily chart, BTC has formed a rising channel pattern, while the weekly chart displays a long cup and handle pattern. These technical formations often signal continued bullish sentiment and long-term price appreciation.
The $223M inflow into Bitcoin Spot ETFs on December 11, led by Fidelity’s FBTC with $122M, underscores institutional confidence in Bitcoin-backed instruments.
Analysts at Coingabbar suggest Bitcoin’s price could retest its all-time high (ATH) of $103,800 if bullish momentum persists. A sustained break above this level may pave the way for BTC to chart new record highs, supported by growing institutional and retail interest.
However, a pullback below $100,000 could expose Bitcoin to bearish pressure. If sellers dominate, BTC might revisit the $98,000 level, a critical support zone to watch in the near term.
1. Macroeconomic Outlook: CPI data aligning with forecasts has eased inflation fears, but the FOMC decision next week will heavily influence Bitcoin’s direction.
2. ETF Inflows: Continued net inflows into Bitcoin Spot ETFs signal robust demand and could act as a catalyst for further gains.
3. Year-End Activity: Market participants typically reduce trading activity toward year-end, potentially capping volatility after the FOMC meeting.
- Bullish Scenario: BTC breaches $103,800 and targets $110,000 as positive sentiment and institutional demand drive growth.
- Bearish Scenario: A dip below $100,000 could lead to a test of $98,000, with further consolidation likely in the short term.
Also read: XRP Price Prediction: What’s Fueling the Ripple $XRP Rally
Lokesh Gupta is a seasoned financial expert with 23 years of experience in Forex, Comex, NSE, MCX, NCDEX, and cryptocurrency markets. Investors have trusted his technical analysis skills so they may negotiate market swings and make wise investment selections. Lokesh merges his deep understanding of the market with his enthusiasm for teaching in his role as Content & Research Lead, producing informative pieces that give investors a leg up. In both conventional and cryptocurrency markets, he is a reliable adviser because of his strategic direction and ability to examine intricate market movements. Dedicated to study, market analysis, and investor education, Lokesh keeps abreast of the always-changing financial scene. His accurate and well-researched observations provide traders and investors with the tools they need to thrive in ever-changing market conditions.
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