The cryptocurrency market continues to show signs of improvement. Bitcoin, the number one cryptocurrency, continues to rise above its 200-day moving average. Additionally, the market is generally recovering as crypto enthusiasts believe the crypto winter is coming to an end.
The US Consumer Price Index (CPI) report shows the leverage of Bitcoin and other cryptocurrencies. The Consumer Price Index is a key indicator that measures monthly changes in prices paid by US consumers. CPI values also measure inflation and deflation in the economy using statistics on customer spending.
Over time, macroeconomic factors such as inflation and deflation have been shown to affect Bitcoin and other cryptocurrencies. So, if the CPI is high, it means that inflation will also be high, causing interest rates to skyrocket and cryptocurrency prices to plummet.
This new data therefore allowed Bitcoin to rally as other altcoins such as Ethereum posted improved numbers.
Whales Drive Bitcoin Rally
On Saturday, January 14th, the Bitcoin price crossed $21,000 on the back of low inflation. BTC rose 7.5% on the day and peaked at $21,299. SentryIt is an analysis platform.
Santiment also revealed that over 416 addresses held between 100 and 1000 BTC. That’s an increase of 3.04% in eight weeks. The influence of whales in the market is very important as the size of the portfolio controls the price. Moreover, the price hike caused by whales will have far-reaching implications for other cryptocurrencies in the market.
Bitcoin Price Prediction, Possible Bull Run?
glass node data It shows that Bitcoin is currently correlating with previous market cycles. For example, after the 2018-2019 bear market, BTC traded below his 200-day moving average (DMA) for 386 days. Similarly, the price of BTC traded below the 200 DMA for 381 days in this bear market until it exceeded it.
Since the beginning of the year, BTC has recorded 12 consecutive days of gains. Sentry reports that it has recorded these gains over the past eight weeks. Bitcoin short-term traders recorded the most profitable spending day on January 14th since April 2022. glass nodeBTC trading volume has increased over the past few months.
At the time of writing, BTC is trading at 20,788. Support levels are $20,207, $20,392, and $20,624. It also has resistance levels of $21,042, $21,227 and $21,459. It is currently trading above the 50-day SMA, indicating that the price remains bullish in the short term.BTC is also trading above the 200-day SMA, suggesting long-term price gains. is shown.
The candlestick pattern on the chart is rising, indicating that the bulls are dominating the market. The Relative Strength Index (RSI) reading is firmly in the overbought zone at 86.53. The RSI shows a significant increase in buying pressure as the BTC whales are active.
The Moving Average Convergence/Divergence (MACD) is above the signal line, indicating divergence. It also shows that BTC is worth buying as it continues to rise.BTC’s long-term and short-term prospects are optimistic as the crypto market rises.
BTC price may continue to rise over the next few weeks. Expect other cryptocurrencies to follow suit, barring negative external factors such as inflation.
However, it is important to note that cryptocurrencies are volatile. If BTC loses price momentum, it will need to move higher to return to its original price. Cryptocurrencies remain volatile and may differ from past behavior at any time.