Bitcoin price nears 3-week high as trader says sub-7% CPI may see $19K

Bitcoin (BTC) traded nearer $17,000 on Jan. 7 after the tip of the yr’s first buying and selling week delivered a spike larger.

BTC/USD 1-day candle chart (Bitstamp). Source: TradingView

All eyes on CPI

Data from Cointelegraph Markets Pro and TradingView adopted BTC/USD as it briefly handed the $17,000 mark the day prior.

The pair had seen flash volatility on the again of contemporary financial information from the United States, this nonetheless fading to go away the important thing degree “unflipped” as resistance.

Nonetheless, the temporary uptick delivered Bitcoin’s highest price level since Dec. 20, 2022.

Reacting, market contributors continued to look to subsequent week’s Consumer Price Index (CPI) print as a key potential catalyst for threat property.

“Unemployment will rally within the coming months. Yields will fall of a cliff if CPI is low,” Michaël van de Poppe, founder and CEO of buying and selling agency Eight, wrote in a part of a abstract tweet on Jan. 6.

“Relief rally is shut.”

“Finally appears to be like like BTC is able to get away of the $16K – $17K base vary it’s been caught prior to now a number of weeks. Initiate the squeeze,” hopeful trader Kaleo continued.

Should the CPI information present inflation reducing faster than anticipated, in the meantime, it may present gas for a visit to multi-month highs close to $19,000, futures trader Satoshi Flipper added.

Bitcoin price nears 3-week high as trader says sub-7% CPI may see $19K
BTC/USD annotated chart. Source: Satoshi Flipper/ Twitter

Data reveals extent of on-chain losses

Zooming out, fellow trader and analyst Rekt Capital joined the rising consensus over the present slim buying and selling vary on BTC/USD forming the subsequent macro backside zone.

Related: $16.8K Bitcoin now trades additional beneath this key trendline than ever

“The present BTC price motion will probably determine as an vital cluster within the formation of the Bear Market backside Accumulation Range,” he determined.

In an additional demonstration of the ache already being endured by hodlers, on-chain analytics agency Glassnode confirmed that Bitcoin has seen its second-largest realized cap drawdown.

Realized cap describes the mixture price at which the BTC provide final moved, and its lower displays realized losses from promoting.

“The 2022-23 Bitcoin Bear Market has seen the Realized cap drawdown by -18.8%, the second largest in historical past, and eclipsed solely by the pico-bottom of the 2011 bear,” Checkmate, Glassnode’s lead on-chain analyst, commented alongside a chart. 

“Investors have weathered a complete of $88 Billion in Net Realized losses.”

Bitcoin price nears 3-week high as trader says sub-7% CPI may see $19K
Bitcoin realized cap drawdown annotated chart. Source: Checkmate/ Twitter

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