BTC Price Analysis!
Yesterday, Bitcoin ($BTC ) breached the 96k support level, reaching 92.2k for the first time in three months, as I had anticipated in my recent analysis. However, an unforeseen development occurred in the cryptocurrency market when BTC experienced a significant pullback. During this dip, Japan increased its Bitcoin holdings, along with MicroStrategy and BlackRock, who also acquired more BTC. This price decline aligns well with future price projections, yet the subsequent rebound was unexpected. Additionally, the $NASDAQ fell nearly 2%, and the U.S. stock market exhibited mixed results.
The U.S. dollar reached a two-year high, while crude oil prices climbed to a five-month peak. This movement appears to favor the upcoming report on January 15; otherwise, BTC's robust movement was unforeseen. A review of the one-day chart clearly indicates a downward trend for BTC.
According to a report from Odaily Planet Daily, BeiChen Lin, an analyst at Russell Investment Company, noted that even a slight increase in the U.S. inflation report set to be released on Wednesday could instigate a sell-off in both the bond and stock markets. The investment strategist remarked that last Friday's unexpectedly strong U.S. employment report has reignited inflation concerns. He stated, "While we find the current yields on U.S. Treasury bonds appealing, we advise investors to maintain their long-term allocation ratios unless there is a significant rise in yields." Economists surveyed by The Wall Street Journal predict a year-on-year increase of 2.9% in the U.S. Consumer Price Index (CPI) for December, up from November's 2.7%. The survey also indicates that the annual core inflation rate is expected to remain steady at 3.3%.
All indicators suggest that the market may decline on Wednesday in response to the inflation and unemployment reports. Currently, BTC stands at 97k, and due to whale purchases at lower prices, it has surged above 97k, making this price correction an unexpected dip. It is advisable to remain prepared for any eventualities.