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bitcoin started the week with notable volatility, demonstrating the unpredictability of the market. After a sharp 6% drop that took the price to new lows around $89,100, btc staged an impressive recovery, rising 9% to reclaim the $97,000 level. This rapid rally highlights both bitcoin's resilience and the cautious sentiment among investors navigating uncertain market conditions.
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The cryptocurrency market now turns its attention to today's Consumer Price Index (CPI) report, a key economic indicator that will provide insight into inflation trends. Expectations are leaning towards a possible rise in inflation, a scenario that could greatly influence the trajectory of bitcoin's price as investors evaluate its role as a hedge against economic instability.
Prominent analyst Jelle weighed in on the current market dynamics and shared technical analysis that suggests bitcoin is likely to encounter “tough conditions for a while” before finding a smoother path up. According to Jelle, the current consolidation phase may set the stage for a bullish continuation once inflation data and market reactions calm down.
As bitcoin approaches critical resistance levels, the outcome of the CPI report will be critical in determining whether btc can sustain its recovery or faces renewed pressure. Investors are bracing for a dynamic day ahead.
bitcoin gains momentum amid volatility
bitcoin is starting to excite bulls as recent price action indicates potential strength. The cryptocurrency has displayed a classic trend reversal pattern characterized by high volatility, significant trading volume, and rapid flash declines followed by rapid recoveries. This combination of factors often precedes major price movements, and many investors are now becoming bullish on bitcoin's prospects.
With the release of the Consumer Price Index (CPI) report later today, market participants are bracing for a volatile session. The report, which offers insights into inflation trends, could greatly influence bitcoin's price trajectory.
Prominent analyst Jelle shared a technical analysis on x, highlighting that bitcoin's recovery of the $97,000 level is a promising development. While he expects volatility to persist as the report is released, Jelle remains confident that btc will continue to rise in the coming weeks.
Adding to the uncertainty is the broader macroeconomic context. As President-elect Donald Trump prepares to take office on January 20, the market faces a mix of fear and uncertainty. This political transition has increased investor caution, further influencing bitcoin's movements.
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Despite these challenges, the resilience that bitcoin has shown in recent days reinforces the bullish case. If btc maintains its upward trajectory, it could pave the way for substantial gains as economic and political events unfold in the coming weeks.
The price remains close to $97 thousand
bitcoin is trading at $97,000 following an impressive 9% recovery from its recent low of $89,164. This rise demonstrates renewed bullish momentum, but btc now faces a critical challenge as it tests the 200 4-hour moving average at $97,400. This technical indicator is often considered a key measure of short-term trend strength and direction.
A successful recovery and stabilization above this level could act as a springboard for bitcoin to move towards and potentially surpass the $100,000 psychological milestone. Such a move would likely fuel greater optimism in the market and reinforce the narrative that a strong uptrend is resuming.
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However, the situation remains delicate. Losing the support at $95,500 could signal a weakening of the bullish momentum and open the door for a deeper correction. In that case, bitcoin could retest areas of lower demand, which could shake investor confidence and extend the current consolidation phase.
Featured image of Dall-E, TradingView chart
