Bitcoin (BTC) has recently staged a resurgence, rising as high as $50,000 before retracing to find support above the $48,000 level.
BTC investors are now watching for the US CPI data to be released later this month for the next major price move.

Bitcoin (BTC) has in recent days shown great potency, staging a rally to a high of $50,000. However, the rally was shortlived by a price correction to find support at the $48,000 level. The current setup reveals that while investors are optimistic about price movements, they are playing a waiting game before going all in on the digital asset.

With the hype around Bitcoin spot ETFs dying down, investors are now awaiting CPI data for January and Fed commentary before the next move. Historically, macroeconomic data has influenced BTC movements, despite cryptocurrencies being uncorrelated to traditional finances and markets.

Later this month, key economic indicators from the United States will be released, including January Consumer Price Index (CPI) and Producer Price Index (PPI) data. Furthermore, several members of the Federal Open Market Committee (FOMC) are scheduled to deliver speeches. These will offer insights into the central bank’s monetary policy outlook, which could ultimately influence capital flow and Bitcoin price movements.

Notably, the Chicago Mercantile Exchange (CME) assigns an 82.5% probability to the likelihood of the FOMC maintaining interest rates unchanged during its meeting next month.

Bitcoin (BTC) Getting Ready to Hit $100,000

At the time of writing, BTC is trading at $49,725 after a nearly 3% surge in the last 24 hours. This jump comes just days after data revealed that Bitcoin Whale accumulated 140,000 Bitcoins in the past three weeks. This shows that whales are on a buying spree, a potentially bullish indicator. On the weekly chart, the digital asset’s performance is unmatched in the top ten, after gaining more than 16%.

Bitcoin will likely break above $50,000 in the coming days, marking a new-year high. As CNF reported, market analysts foresee the digital asset retesting its all-time high of $69,000 reached about two years ago and possibly hitting $100,000 by the end of the year.

This price rally will be in part influenced by ETF flow with CryptoQuant, an on-chain data provider, predicting a “worse case” scenario of at least $55,000. On the upside, Bitcoin’s price could rise to $112,000 by the end of the year. New spot Bitcoin ETFs, led by BlackRock’s IBIT and Fidelity’s FBTC, have so far amassed over 200,000 BTC, showcasing growing investor confidence in Bitcoin.

Another key development set to come into play is the April Bitcoin halving. Set to slash mining rewards by half, this historically bullish event could drive the digital asset to an all-time high. Banking giants Morgan Stanley and Standard Chartered have offered their bullish predictions, with a Standard Chartered report predicting BTC will reach $120,000 by the end of the year.

Once $50,000 is broken, BTC could potentially correct with investors taking profits at this critical psychological position but bulls will look to continue the momentum to set new highs in the coming weeks.

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Filed under: Bitcoin - @ February 12, 2024 9:13 pm