– Bitcoin price takes a small step back in early Wednesday trading.
– BTC jumped over 1% on Tuesday after US Fed chair Powell remained silent in any comments after non-voters pushed back against market euphoria.
– Thursday’s US inflation numbers will be vital and could see a massive pop higher.
Bitcoin (BTC) price is currently trading against a 6% profit for the year after a massive drop in 2022.2023 has thus far witnessed a nice 180-degree turnaround of sentiment.Although recovery will be long and difficult, growth spurts are being detected, and it is now up to traders to make those count and nurture them to keep the rally going.A surgical trading plan is vital, and a hawkeye on any economic data point is key to trading this rally and getting out of it without any wear and tear.
Bitcoin traders can see this rally through to $19,000 if inflation eases
Bitcoin price is thus showing some healthy signs, and here at FX Street
experts will guide you through the numbers to grow that investment or trading portfolio.A big element to remember is the US inflation number of Thursday, which will either see this rally higher or take a step back.
The market estimate is for a 6.5% read on the Consumer Price Index (CPI) for December, with the lowest end at 6.3%.
Three scenarios can be distilled from this
information.BTC could shoot higher as $19,000 is up for grabs near the end of this month.This would be the case if US inflation on Thursday drops below the lowest estimate of 6.3%, making the Fed more likely to end its hiking cycle quicker.
In a second scenario, inflation could fall in line with either 6.3% or 6.5%, followed by some whipsaw action.At the end of the day, as the dust settles, this option would make for a smaller but still visible rally in the price action.In terms of levels, $17,831 is a good profit target at the monthly R1 resistance level for January.
BTC/USD daily chart
The last scenario is a replay of 2022 and would take place in the event that
inflation either comes out above 6.5% or even beats the prior 7.1% reading.Expect immediate risk-off sentiment across the board with a stronger US Dollar, equities deep in the red, the VIX jumping massively and cryptocurrencies floored on their backs.The rally of January would unwind in just an hour, and BTC price could be seen hitting $16,020 in search of support as bulls blow up the sell-side with their sell orders in an attempt to exit the market.
Information on these pages contains forward-looking statements that involve risks and uncertainties.Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets.
You should do your own thorough research before making any investment decisions.FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements.It also does not guarantee that this information is of a timely nature.Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress.All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned.
The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations.The author makes no representations as to the accuracy, completeness, or suitability of this information.FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use.
Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
[Cryptos feed](/cryptocurrencies/news/feed) Join Telegram
Recommended Content
Editors’ Picks
Stablecoin USDC battles rival Tether for dominance after delisting in Canada
USD Coin (USDC), the second-largest stablecoin in the crypto market, witnessed a spike in its trade volume since October last year.
Crypto.com announced the delisting of Tether (USDT) for Canadian customers whilst the stablecoin battled competitors for dominance as USDC takes over with rising trade volume.
More Crypto.com News
XRP Price Prediction: Some tough levels ahead slow down rally with $0.42 on top
Ripple (XRP) price has jumped over 3% early Wednesday as bulls pierce through the monthly pivot level at $0.36.This comes after a very nervous trading day on Tuesday in the US session as
More Ripple News
Ethereum Shanghai hard fork and token unlock: A complete guide to unstaking ETH
Ethereum Shanghai Hard Fork is the next key milestone for the second-largest cryptocurrency by market capitalization.The event is closely followed by a token unlock, where at least 35,008 ETH will be unlocked shortly after the hard fork is successful.
More Ethereum News
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Assessing chances of crypto market reversal
Bitcoin price continues to play an important role in curbing unnecessary optimism in the market.
The bearish outlook that has developed over the last few days could result in a steep correction.
More Bitcoin News
Bitcoin: Why $20,000 BTC is programmed
Bitcoin (BTC) price is traversing a channel that is sloping to the upside.Despite the consolidation, BTC is slowly climbing higher like clockwork.
The recent Federal Open Market Committee (FOMC) Meeting on December 15 caused BTC to spike beyond the confines of the channel, but things are back to normal.
Read full analysis.