On Friday, Bitcoin (BTC) set a new all-time high of over $20,000, contributing to an upward trend. When compared to early November, the current price of bitcoin is unprecedented.
After the news about the Consumer Price Index (CPI) caused a big rally in the crypto market, Bitcoin (BTC) is seeing an increase in bullish momentum. The asset’s price has decreased to around $20,901.78 as of writing; nevertheless, it still marks a 24-hour increase of 9.92%.
In the days leading up to the release of the December Consumer Price Index report from the Federal Reserve, the price of BTC began to rise. BTC/USD opened the week at $17,207 and has been steadily rising, reaching a yearly high of $21,095. The CPI report confirms that inflation in the United States has been slowing, which was in line with market forecasts.
Bitcoin’s recent rise has prompted more people to wonder whether the price is in a fake-out or breakout mode.
Is this just a bullish recovery in a depressed market?
There are still obstacles in Bitcoin’s path, such as layoffs at cryptocurrency exchanges amid a worsening macro economy, legal concerns at Gemini and Genesis, and possibly forming a US House subcommittee focused on cryptocurrencies.
Furthermore, Bitcoin’s relative strength index (RSI) indicates that BTC is currently overbought. RSI indicators suggest a possible steep downward trend when the price corrects.
