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

Bitcoin (BTC) traded near $17,000 on Jan. 7 after surging at the end of the first trading week of the year.

BTC/USD 1-day candlestick chart (Bitstamp).Source: Trading View

Focus on the consumer price index

Cointelegraph Markets Pro and TradingView It followed BTC/USD as it briefly crossed $17,000 the day before.

The pair saw flash volatility on the back of new economic data from the US, but nevertheless this weakened and key levels remained ‘not reversing’ as resistance.

Nonetheless, the short-lived rally resulted in Bitcoin’s highest price since December 20, 2022.

In response, market participants continue to see next week’s Consumer Price Index (CPI) as a key potential catalyst for risky assets.

“The unemployment rate will rise in the coming months. If the consumer price index is low, yields will fall to the brink,” said Michael van de Poppe, founder and CEO of trading firm Eight. rice field. I have written Part of a summary tweet from January 6th.

“The relief rally is approaching.”

“BTC finally looks poised to break out of the $16,000-$17,000 base range that has been stalled for the past few weeks. continuation.

Meanwhile, if CPI data shows inflation falling faster than expected, it could provide fuel for a trip to a multi-month high near $19,000, according to futures traders. Satoshi Flipper said. Added.

BTC/USD annotated chart. Source: Satoshi Flipper/Twitter

Data Reveals Degree of On-Chain Loss

Zooming out, fellow trader and analyst Rekt Capital joined the growing consensus that BTC/USD’s current narrow trading range will form the next macro bottom zone.

RELATED: Bitcoin at $16.8K Is Currently Trading Below This Key Trendline More Than Ever

“The current BTC price action is likely to be an important cluster in forming a bear market bottom accumulation range,” he said. decision.

In further demonstration of the pain Hodler has already endured, on-chain analytics firm Glassnode showed that Bitcoin saw the second largest realized cap drawdown.

The Realized Cap represents the total price of the last time the BTC supply moved and its decrease reflects the realized loss from the sale.

“The 2022-23 Bitcoin bear market will see a realized cap drawdown of -18.8%, the second largest ever, only overshadowed by the 2011 bearish pico-bottom,” said Glassnode chief on. chain analyst Checkmate said. commented along with the chart.

“Investors have weathered net realized losses totaling $88 billion.”

Bitcoin realization cap drawdown annotated chart. Source: Checkmate/Twitter

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