© Reuters
Investing.com – The cryptocurrency broadly increased its rise on Friday evening, and continued to rise during the day on Saturday, reaching a high of $23,312, the highest since August 18, 2022. The cryptocurrency then posted a slight correction. Saturday night, stabilizing around $22,800 Sunday morning.
Recall that Friday was marked by a general upturn in risk appetite on the world markets, with in particular the US technology index which ended the day up 2.66%.
The rise came despite negative news about cryptocurrency lender Genesis, which filed for bankruptcy protection last Thursday. Some pointed out that the rise in price after Genesis filed for bankruptcy could mean that the news was already priced into the price of bitcoin.
Furthermore, cryptocurrency investors seem rather focused on the macroeconomic context. Indeed, a major catalyst for Bitcoin’s rally in recent weeks has been the positive CPI report released on January 12 by the Bureau of Labor Statistics (BLS), which showed that headline inflation for all urban consumers decreased by 0.1%.
This was the largest drop in inflation since April 2020. Since then, several other statistics have come to confirm to investors the prospect of a less hawkish Fed, which has fueled the rise in Bitcoin.
Next week, crypto investors’ attention will be mostly focused on the first estimate of US Q4 GDP (Thursday), as well as the PCE price index pegged to household spending (Friday), reputed to be the Fed’s most watched inflation index.
Weaker-than-expected data could bolster Fed pivot expectations even further, and push Bitcoin to new highs.
Finally, from a graphical point of view, Saturday’s high around $23,200 is an immediate resistance, before the psychological threshold of $24,000, then the zone of $25,000/25,200 (high of August 15, 2022). On the downside, the $22,500 area is the first potential support, ahead of $21,500.
