Bitcoin Price Surges After U.S. CPI Report: What’s Next for BTC?

Bitcoin Price and Market Sentiment Shift as Fear Index Drops: Is a Rally Coming?

Bitcoin Price – Bitcoin (BTC) led the broader crypto market with a mild rebound in the past 24 hours, following the release of the U.S. Consumer Price Index (CPI) report, which came in at 2.8%, below the expected 2.9%. As a result, Bitcoin saw a 2% increase in the last 24 hours, trading around $83,282 during the early European session on Thursday, March 13.

Fear and Greed Index Reflects Market Shift

The price surge significantly reduced the fear of further crypto capitulation. The Bitcoin fear and greed index jumped from 34%, indicating market fear, to around 45%, reflecting a more neutral sentiment among traders.

Bitcoin’s Price Chart and Midterm Targets

Bitcoin’s price has been facing downside risks after dropping below the crucial support level of $92k. On-chain data from Santiment indicates notable exhaustion among traders. Every price dip has failed to mark a bottom, leading to further uncertainty. From a technical analysis perspective, Bitcoin could potentially experience a sharp V-shaped reversal in the coming weeks. The Relative Strength Index (RSI) has formed a bullish divergence, indicating potential for upward momentum.

According to crypto analyst Ali Martinez, Bitcoin must hold above the 50-week Moving Average (MA), currently around $75.5k, to avoid a historical capitulation towards the 200-week MA, which is hovering around $46k. To confirm a bullish rally, Bitcoin price must consistently close above the $92k-$95k range, potentially leading to a breakout towards $109k. Moreover, more than 1.2 million Bitcoin addresses, out of 54 million on-chain holders, purchased 726k BTCs around $95k.

Bullish Sentiment and Ongoing Institutional Adoption

Looking ahead, Bitcoin is expected to follow the price trajectory of gold, which has been rebounding toward its all-time high. The ongoing adoption of Bitcoin by nation-states, including the United States, reinforces the narrative of Bitcoin as digital gold.

Meanwhile, U.S. spot Bitcoin ETFs broke a two-week losing streak with a $13.3 million cash inflow on Wednesday. Despite BlackRock’s IBIT losing $47 million, ARKB contributed a net cash inflow of about $82.6 million, helping to balance the market sentiment.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.