The cryptocurrency market has remained relatively quiet over the past 24 hours. To share relatively low trading volumes, which is usually popular for the weekend. It should also be noted that investors may be cautious ahead of the release of the November CPI numbers. We explain why.
The CPI, why?
The consumer price index is a an economic indicator that measures changes in the prices of goods and services purchased by households. This index is calculated by comparing the prices of a “basket” of goods and services representative of household consumption at different points in time. The consumer price index is often used as a inflation indicator.
Although the consumer price index does not take into account Bitcoin transactions, it is possible that fluctuations in the value of bitcoin could affect the inflation measured by the consumer price index if the people are starting to use bitcoin in a meaningful way to buy. goods and services.
Next Tuesday, investors can watch out for an announcement from the US Bureau of Statistics. It will release the Consumer Price Index figures for November. This is widely used to measure the country’s inflation rate. Until now, it has always had a big impact on the price of cryptos and more generally on Bitcoin. This often leads to high volatility in the underlying digital asset.
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Bitcoin seems to be stabilizing in the last few days
There have been no strong fluctuations in the price of Bitcoin in the last 24 hours. The asset is digital stabilized above the $17,000 mark. It only gained 0.2% during the day, according to CoinGecko.
Bitcoin price evolution in the last 24 hours (Source: Binance)
As can be seen in the chart below, there were no major swings, and the price dropped to a low just below $17,100.
Market participants may be cautious as the US Bureau of Labor Statistics will make an important announcement on Tuesday.
Altcoins in the green but insignificant gains
The altcoin market has been doing well in the last 24 hours. Despite increases that are not significant, as shown in the infographic below by Quantify Crypto.
OSMO made the best rise of the day, gaining a total of 11.5%. The digital asset is being followed by native crypto from decentralized derivatives trading platform GMX, which is up almost 7%.
On the other hand, AXS Axie Infinity seems to be a bit behind. It is down about 4.8% in the last 24 hours.
Bitcoin’s dominance is still at 37%, which shows that the market is in some balance where altcoins are not able to reduce bitcoin’s share at the moment.
Meanwhile the Ethereum rose slightly by 0.8%. The second digital asset seems to be weathering the tough times in recent weeks quite well.
A big rally to expect for Bitcoin?
There are many rumors about the future of Bitcoin. Some now believe that the number 1 digital asset will gain bullish momentum in the coming weeks.
This Bitcoin hype can be explained by several factors. First, thanks to the Price Momentum Oscillator. The second is based on the calculation of the rate of variation which is twice shifted using an exponential moving average. This indicator is below zero for Bitcoin today. This situation together with support in the form of a curve may cause a bounce according to some experts by 2023 or 2024. They are looking at a peak of $24,000.
In terms of pure price action, Bitcoin ranges in between $15,500 and $18,000 from November 10 and the fall of FTX. The latter has had very measured volatility since that date.
Price Momentum Oscillator (PMO) below zero, together with the curved support, will trigger a bounce in #Bitcoin.$BTC present in the PMO zone below zero and in contact with the curved support.#BTC #Crypts pic.twitter.com/6WwT8XqvNJ
— Tardigrade Trader (@TATrader_Alan) November 28, 2022
Well-known crypto expert Michaël Van de Poppe believes that 2023 will be the year of Bitcoin. On Twitter, he shared with his 642,700 followers that a bitcoin rally is expected for the second quarter of 2023. According to him, Bitcoin Could Easily Reach $42,313 and $50,324 Targets by June 2023. The trader used the Fibonacci index to analyze the potential of Bitcoin in 2023.
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