Bitcoin price rallied over $17.3k for the first time after the FTX crisis, rising almost 6%. The positive sentiments caused the BTC price to skyrocket over 3% after the CPI inflation comes in at 7.1% against the expected 7.3%. However, Bitcoin bounced back from the $18k resistance level that CoinGape earlier reported.
Bitcoin price is currently trading at $17,807, up nearly 4% in the last 24 hours. The trading volume has also jumped over 35% and the 24-hour low and high are $17,160 and $17,942, respectively. The Bitcoin Fear and Greed Index rises to the pre-FTX crisis level of 30.
According to CryptoQuant data, Bitcoin is entering a pre-halving accumulation cycle (blue) after a year-long bear market. Bitcoin (BTC) price formed a double top distribution cycle in 2021 (red). After massive selloffs by whales and miners, the BTC price has now reached the multi-year support and confluence zone (white).
Institutional investors are expected to quietly buy cheap cryptocurrencies similar to the previous accumulation cycle of 2019-2020. Whales and large investors will also jump in to accumulate Bitcoin from lower levels.
Experts believe selling pressure has already been exhausted and there’s only a significant amount of unprotected short positions. Moreover, the bullish macroeconomic news such as the continuous fall in the U.S. CPI inflation and the Federal Reserve slowing rate hikes will bring a fresh rally to $20k.
Traders are awaiting a paradigm shift to create a perfect storm for a short squeeze. It will push the BTC price to break the $19.2 resistance level.
As per CoinGecko, the next Bitcoin halving event is scheduled for block 840K, during the spring of 2024. The BTC block reward will decrease from 6.25 to 3.125 coins.
The U.S. Federal Reserve to announce the rate hike during its FOMC meeting on December 14. Fed Chair Jerome Powell earlier hinted at lower rate hikes in December and upcoming months.
As per the CME FedWatch Tool, the probability of a 50 bps rate hike is 79.4%. The value increased from 73.5% after the CPI data release.
Moreover, the U.S. Dollar Index (DXY) has dropped below 104. The stock markets have already reacted to it, but crypto investors are awaiting the Fed rate hike decision to confirm the market bottom.
Also Read: How Far BTC May Prolong Its Ongoing Rally?
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