Consumer Price Inflation (CPI) pushed Bitcoin past bear territory

On Wednesday, January 12, Bitcoin added 2.75%. In the American session, the price rose to $ 44322. The active phase of growth fell on the American session. The dollar index collapsed after the publication of the inflation report in the United States for December.

The published US consumer price inflation figures (CPI) exceeded forecasts, reflecting the highest price increases in the country since 1982. The report did not provide support to the dollar, as market participants included in prices the first rate hike in March. The decline in Treasury yields negatively affected the dollar as a defensive asset. Despite the high values ​​of inflation, the market preferred to resort to the strategy of “buy on rumors, sell on facts”.

Bitcoin has risen in price following the major currencies and stock indices. On Tuesday, the dollar index fell to a new low of 94.69 points, while the SP500 index futures are showing sideways dynamics. Buyers have tested the $ 43,800 resistance and are now trying to break through to the $ 45,500 level.

The external background for the cryptocurrency market remains neutral. The technical picture at the hourly TF is still on the buyers' side. They need to be given some activity and the price will move to $ 45,500 within 2-3 hours. Time is short, you need to act. There are no large sales at the current level. Support has shifted to 42850.