The US CPI data has just landed, inflation is lower than expected, and the market has taken off directly.
A single bullish candle has pierced through the 71000 resistance level, and the bears are being pressed down.
This wave clearly shows that institutions have entered early in anticipation of favorable data, and expectations for Federal Reserve interest rate cuts are heating up, the script of liquidity easing is about to unfold again.
Looking at the chart, the four-hour level has broken through the previous high with increased volume, the Bollinger Bands are opening upwards, and the MACD has formed a second golden cross above the water, all of which are textbook bullish signals. The key now is whether it can stabilize above the psychological level of 72000; if it can hold, it is highly likely to test the previous high of 75000, and the market is navigating smoothly. The initial support looks at the EMA7 around 68500; even if there are pin bars, they can be quickly pulled back, indicating that the spot buying is quite strong.
On-chain data is also quite interesting, as whale addresses have been aggressively accumulating in the past few days, and the net outflow from exchanges has exceeded 20,000 BTC, which clearly indicates that the hoarding party is buying. In terms of derivatives, the long-short ratio hasn't reached a dangerous zone, and the funding rates are reasonable, so there’s currently no large-scale liquidation risk. However, we need to pay attention to whether there will be profit-taking pressure after the US stock market opens tonight, especially since Grayscale is still experiencing outflows. Altcoins are being drained again, and mainstream coins are basically unable to keep up with Bitcoin; holding spot is much more reassuring than playing contracts in this market.
To be honest, chasing highs at this position is certainly uncomfortable, but the trend is clear, and we must admit that market sentiment is obviously leaning towards the bulls. Remember not to FOMO, avoid high leverage, and just hold your spot.
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