Key Takeaways
- Bitcoin nears $100,000 as inflation fears ease with CPI data.
- The U.S. dollar weakens, boosting Bitcoin's appeal to investors.
- Traders anticipate volatility amid political and market shifts.
Bitcoin approached the six-figure milestone on January 15, with BTC/USD hitting weekly highs of $98,679.
This surge followed the release of December’s U.S. Consumer Price Index (CPI), which met expectations and eased concerns about rising inflation.
Bitcoin rose 3% on the day and over 10% from its recent low on January 13, as the U.S. dollar weakened against risk assets.
Trader Daan Crypto Trades remarked on X that the CPI data had temporarily alleviated inflation fears.
He noted:
BTC Good CPI print. Should clear the inflation fear narrative for a bit.
Market analysts forecast volatility
Traders highlighted a possible reversal in Bitcoin’s downtrend since December highs.
Cryptobirb suggested on X that a head-and-shoulders pattern on daily charts might soon be invalidated, signaling continued bullish momentum.
However, QCP Capital cautioned against downside risks, warning of potential volatility tied to Donald Trump’s inauguration.
QCP Capital pointed to Bitcoin’s repeated tests of the $90,000 support level, advising:
Expect heightened volatility before and after the inauguration as markets digest and adjust.
Bollinger bands signal incoming price swings
Market analyst Matthew Hyland noted that Bitcoin’s Bollinger Bands on three-day timeframes were at their narrowest in a year, a signal often associated with imminent sharp price moves.
