Bitcoin Breaks Through $18,000, But Is CPI Messing Up Today?

Despite the fact that many analysts warn that this could turn around quickly, the renewed positive sentiment continues for the time being. The entire crypto market turns green again and the recent rally forth. Bitcoin (BTC) held around $17,400 yesterday and started to rise sharply again towards evening.

Shortly after midnight, bitcoin made a big jump and even broke through $ 18,000. The price then spiked around $18,300 and touched nearly $18,400 on some exchanges. During the night the price dropped slightly again and is currently looking for support and a higher low. The BTC price stands at $18,110 on Binance and $16,840 on Bitvavo at the time of writing.

This means that the bitcoin price is up 4% today. Trading volume increased by 48% in the last 24 hours. The total market capitalization is $349 billion and the dominance is 39.5%. The Fear & Greed Index comes out at 30 (Fear).

Bitcoin short squeeze and hash rate at all-time high

Bitcoin’s rise last night was accompanied by a significant short squeeze. $52 million in short positions were liquidated in about two hours, reports On-Chain College. It is a sign that many investors still very much bearish are.

In addition, Dylan LeClair notices that the bitcoin hash ratethe total computing power of the network, back around all time high sit. However, that in turn increases the pressure on miners and this pressure is already very high due to the low price and high costs. LeClair adds that miners’ bitcoin reserves are now almost exhausted.

What will CPI do with the BTC price today?

This relief, or bear market, rally has also been seen in other financial markets since the turn of the year. There is speculation that fears about Federal Reserve policy have eased somewhat. The fear returned sharply in December when the Fed did more hawkish sounded better than expected.

Therefore, the US consumer price index (CPI), which will be released later today, could again have a major impact on prices. If inflation figures come in higher than expected, there is a good chance that the Fed will tighten its strings anyway and fear will kick in again. If the numbers turn out lower than expected, this may further ease the pressure and we will see this rally continue a bit further. The inflation figures will be published at 14:30 Dutch time.

Many analysts remain bearish on bitcoin price

Despite the recent rally, many analysts warn that we are still in a bear market. The analysts of Crypto Insiders also see two different scenarios where bitcoin may take another significant dive in the medium term. Il Capo of Crypto is sticking to its bearish prediction that bitcoin could soon drop to $12,000.

Analyst Ali Martinez reports that bitcoin found support around the Proof of Work pricing model during the previous two bear markets. This is currently around $12,500.

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Disclaimer: Investing involves risks. Our analysts are not financial advisors. Always consult an advisor when making financial decisions. The information and tips provided on this website are based on our analysts’ own insights and experiences.

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