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Since Bitcoin broke through the $100k barrier, the journey hasn’t been the euphoric sprint to $110k or $120k that some optimists envisioned. Instead, the aftermath of this milestone brought a volatile 24 hours, characterized by rapid price swings and a dip in buying volume. Following this turbulence, Bitcoin has stabilized around the $100k mark, consolidating its gains.
This consolidation phase, which follows mass liquidations and the psychological break of $100k, is highly bullish. Key technical indicators that were previously overextended into overbought territory have now reset into neutral zones. This reset provides Bitcoin with more room to rally when the consolidation ends.
CPI Data and FOMC: Market Catalysts to Watch
Thursday morning will bring the final CPI numbers for the year. November’s inflation figures came in as expected, with a 0.2% month-over-month (MoM) increase and a 2.6% year-over-year (YoY) reading. However, December’s inflation is forecasted to rise slightly, with a 0.3% MoM increase bringing the YoY reading to 2.7%.
Why does this matter? In nine days, the final Federal Open Market Committee (FOMC) interest rate decision of the year will take place. The inflation data on Thursday may influence the Fed’s decision. Markets are currently pricing in a 25 basis point rate cut, aligning with Powell's recent statements, but there remains a 15% chance that the Fed opts to hold rates steady. A pause in rate cuts could be interpreted as bearish for risk-on assets in the short term, potentially offering lucrative buying opportunities within the crypto market.
For investors feeling underexposed or concerned about missing out, this period of consolidation offers a compelling opportunity to strengthen your Bitcoin position. The market is still in its early growth phase, making this a golden moment for long-term believers to capitalise. Contact your Stormrake Crypto Broker today to take advantage of this setup.
Stormrake Spotlight: Artificial Super Intelligence (FET) ($2.06)
Stormrake Spotlight: Artificial Super Intelligence (FET) ($2.06)
FET has mirrored Bitcoin’s recent behavior, consolidating after a minor rally. Currently holding a base just above $2, this pattern suggests the potential for a breakout once the consolidation phase concludes. Similar to projects like Ondo and Fantom in prior weeks, a strong base often serves as a springboard for the next upward move. Investors should keep an eye on this setup as FET positions itself for further gains.
BTC/USD Key Levels and Price Action:
BTC/USD Key Levels and Price Action:
At the time of writing, Bitcoin appears to be testing a breakout, with a bullish hourly candle followed by a tentative retracement. Bitcoin remains above the critical support level of $100k and continues to display bullish momentum. The 21-day exponential moving average (EMA) is trending above the 55-day EMA and pointing upwards, reinforcing the positive trend. Should bullish price action resume, the medium-term target is the CPR R1 line at $108k.
BTC Total ETF Flows for 8 Dec: $ N/A million
(ETF flow data is sourced from https://farside.co.uk/btc/ and reflects figures at the time of writing.)
ETH/USD Key Levels and Price Action:
ETH/USD Key Levels and Price Action:
After outperforming Bitcoin recently, Ethereum has underperformed over the past two days. Nonetheless, it remains in a bullish trend, supported by the 21-day EMA positioned above the 55-day EMA. This dynamic provides a solid foundation for continued upward momentum.Ethereum encountered resistance at $4,064, failing to breach this key level on its first attempt. If bullish momentum persists, ETH is likely to retest this resistance soon.
ETH Total ETF Flows for 8 Dec: $ N/A Million
(ETF flow data is sourced from https://farside.co.uk/eth/ and reflects figures at the time of writing.)
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Written by Alexandar Artis
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