Bitcoin has started the week with a certain volatility, showing the unpredictability of the market. After a sharp decline of 6% that took the price to new levels around $89,100, BTC held back remarkably, surrendering 9% to regain the $97,000 level. This rapid rebound reflects both Bitcoin's resilience and the cautious sentiment among investors that is driving uncertain market conditions.
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The crypto market is now turning its focus to today's Consumer Price Index (CPI) report, a key economic indicator that provides insight into inflationary trends. Expectations are leading to a possible rise in inflation, a scenario that could have a major impact on Bitcoin's price path as investors assess its role as a hedge against economic instability. .
Lead analyst Jelle weighed in on the current market dynamics, sharing technical analysis that suggests Bitcoin is likely to encounter “temporary bumpy conditions” before finding a smoother path higher. According to Jelle, the current level of consolidation may set the stage for bullish continuation once inflation data and market reactions calm down.
As Bitcoin approaches critical resistance levels, the outcome of the CPI report will be crucial in determining whether BTC can recovery or facing new stress. Investors are preparing for a dynamic day ahead.
Bitcoin Builds Momentum Amidst Volatility
Bitcoin is starting to pick up bulls as recent price action indicates potential strength. The cryptocurrency has exhibited a classic trend reversal pattern characterized by high volatility, large trading volume, and rapid crashes followed by quick recoveries. This combination of factors often precedes large price movements, and many investors are now turning optimistic about Bitcoin's outlook.
With the Consumer Price Index (CPI) report due out later today, market participants will be bracing for a volatile session. The report, which provides insight into inflationary trends, could have a significant impact on Bitcoin's price path.
Chief analyst Jelle shared a technical analysis of X, indicating that Bitcoin's retracement of the $97K level is a promising development. While he expects volatility to continue as the report comes out, Jelle remains confident that BTC will continue to climb higher in the coming weeks.
Adding to the uncertainty is the wider macroeconomic backdrop. As President-elect Donald Trump prepares to take office on January 20, the market is facing a mix of fear and uncertainty. This political movement has increased the attention of investors, affecting the movements of Bitcoin.
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Despite these challenges, the stability that Bitcoin has shown in recent days strengthens the bullish case. If BTC continues its upward trajectory, it could pave the way for substantial gains as economic and political events unfold in the coming weeks.
Price is holding close to $97K
Bitcoin is trading at $97,000 after an impressive 9% recovery from its recent low of $89,164. This rise indicates renewed bullish momentum, but BTC now faces a major challenge as it tests the 4-hourly 200 moving average at $97,400. This technical indicator is often seen as a key measure of short-term strength and trend direction.
A successful appeal and stability above this level could be the starting point for Bitcoin to push towards and possibly surpass the psychological milestone of $100,000 . It is likely that such a move would encourage more optimism in the market and reinforce the statement of a strong bullish trend starting again.
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However, the situation remains delicate. Losing support at $95,500 could weaken the bullish trend and open the door for a deeper correction. In that case, Bitcoin could reconfirm lower demand zones, which could shake investor confidence and extend the current level of consolidation.
Featured image from Dall-E, chart from TradingView
