Bitcoin (BTC) has once again reclaimed the crucial $18,000 level after weeks of consolidating around $17,000. Indeed, bulls have taken advantage of the positive Consumer Price Index (CPI) and inflation data to overpower the bears.
Based on the current price actions, Kitco News analyst Jim Wycoff on December 14 has noted that with bulls having a near-term technical advantage, Bitcoin is likely to develop a price uptrend.
“This week’s price action has produced a bullish upside “breakout” from a choppy and sideways trading range on the daily bar chart, to suggest a price uptrend will develop. Bulls have the near-term technical advantage and have momentum on their side,” Wycoff said.
Bitcoin price analysis
By press time, Bitcoin was trading at $18,054 with daily gains of 1.65% to hit a four-week high. The weekly chart indicates that Bitcoin has rallied almost 8% while sustaining high buying pressure.
Elsewhere, Bitcoin is witnessing a record inflow of capital, with the asset’s market cap at the time of publishing hitting $347 billion, representing an inflow of about $5.2 billion in the last 24 hours.
Bitcoin’s ongoing short-term rally comes after the United States inflation showed signs of slowing, with the market focusing on the next Federal Reserve monetary policy regarding interest rate hikes.
Impact of the Fed policy
As reported by Finbold, crypto trading expert and analyst Michaël van de Poppe suggested that the Fed will likely offer Bitcoin a short-term relief rally if it sticks to the expected 50 basis points. According to the analyst, higher rates of about 75 basis points will likely invalidate the ongoing short-term rally.
Notably, Bitcoin has been impacted by high inflation, and the cool-down gives the Fed a reason to slow down its aggressive monetary policy.
Indeed, Bitcoin’s current performance is a relief for investors after the asset appeared threatened by the concerns around the Binance crypto exchangereserves uncertainty and the possible prosecution by the United States authorities.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.