Bitcoin hit 3 months high above $18,000 following a dip in the U.S dollar and FTX asset recovery
Bitcoin price analysis indicates a bullish bias for the day. BTC opened higher and touched a high of $18,370 following a risk aversion. The move was primarily sponsored by the release of the much anticipated U.S. inflation data.
The annual inflation data in the U.S. slows down for a sixth straight month to 6.5% in December, the lowest since October 2021. The data came in line with market expectations. Investors rush to the riskier asset in the anticipation of a slowdown in the Fed’s aggressive tightening campaign.
Further, in the latest development, more than $5 billion in liquid assets were recovered by FTX lawyers which underpin the market sentiment.
Bitcoin price trades near critical resistance level
A double top-formation near $18,390 suggests a pause in the recent gains. However, the rising volumes favor bulls. As of press time, BTC/USD is exchanging hands at $18,306, up 1.12% for the day. The 24-hour trading volume of the largest cryptocurrency rose 94% to $29,884,054,566 as per Coinmarketcap
On the daily time frame, the Bitcoin price is rising after forming the bottom near $15,588 on November 9. The rising trendline acts as a support for the bulls. The upside picked up the momentum as the price breached the critical 50-day Exponential Moving Average (EMA) on Monday
Now, a break above the descending trendline that extends from the high of $21,378 will be a prerequisite to sustaining the current bullish sentiment. If that happens the next upside target will be $19,000 followed by the high of October 25 at $20,432.
With the overbought daily RSI (14), however, the market seems to be in overstretched condition. Further, the double top near $18,390 is inviting bears to take the front seat. A drop daily low would invalidate the bullish outlook with an eye on a 50-day EMA at $17,170 in the short term.