Bitcoin Rebounds After US Inflation Data

Is this the start of a new bullish rally in the cryptocurrency market?

The price of bitcoin (BTC) rebounded on Wednesday after the release of US inflation data that came in line with expectations. The world's leading cryptocurrency rose 4.79% at the time of this report.

Bitcoin price is facing resistance at $104,000 and near-term EMA25 support at $94,800. / TradingView

Inflation and rate cuts

The annualized inflation in the United States read in line with expectations at 2.7% when the data was released, which benefited bitcoin. This keeps intact bets that the Federal Reserve will cut interest rates by 25 basis points on December 18, taking them to 4.50%. A rate cut usually produces weakness for the dollar and strength for bitcoin and risk assets, such as alternative cryptocurrencies.

Crypto market recovery

Bitcoin remained bullish and recovered the price, closing at USD 101,125.00. Alternative cryptocurrencies also recorded a strong recovery after a drop last Monday following the liquidation of leveraged positions.

The market capitalization of the crypto sector recovered again to $3.6 trillion after a drop recorded the previous day. In addition, the net capital flow into crypto ETFs continued to rise, with positive inflows for the third consecutive day.

Bitcoin Technical Analysis

The price of Bitcoin is facing the resistance located at USD 104,000 and above the short-term EMA25 support at USD 94,800. Bitcoin is still in an uptrend, but the price seems to be slowing down as it tries to break the resistance of USD 104,000.

In summary, the crypto market and Bitcoin showed a strong recovery after the inflation data in the US, which could be the start of a new bullish rally. However, analysts are keeping an eye on the evolution of the price of Bitcoin in the coming days.

Disclaimer: This article is for informational purposes only and should not be considered financial advice. Readers are advised to conduct their own research before making any investment decisions.