Positive J. Powell Testimony allowed BTC to rally 3%

On Tuesday, January 11, at the end of the day, bitcoin rose by 2.17%, to $ 42,729. The active phase of growth of the BTC / USD pair fell on the American session. The US dollar weakened against its competitors after the speech of the head of the US Federal Reserve J. Powell in the Senate Banking Committee. Powell made it clear that the Fed has yet to make a decision on a nearly $ 9 trillion cut in its balance sheet. Answering questions, he said stablecoins can be used with the official digital currencies of the central bank CBDC.

Investors were relieved that the speech of the head of the Federal Reserve did not bring any serious surprises. The focus of traders' attention has turned to today's report on the US CPI. High volatility in the market should again be expected during the American session after the CPI release (15:30 Kiev time). Lower inflation will spur dollar sales and lower yields on 10-year Treasuries.

The BTC / USD pair approached the $ 43500-43700 resistance zone. For a confident recovery, buyers will need support from the US stock market and the foreign exchange market. The technical picture at the hourly timeframe is favorable to make a quantum leap of $ 45,500.