Bitcoin Rallies Ahead of Crucial CPI Data Release

After dipping below $90K, Bitcoin has had a great recovery, climbing on the back of strong momentum. Overnight, BTC reached a high of $97.3K, marking a 9% rally from the previous day’s low.

This upward movement is an encouraging signal for the market, but caution is warranted with the release of the Consumer Price Index (CPI) data tomorrow morning. The recent JOLTS report showed stronger-than-expected numbers, negatively impacting markets and signaling that inflation remains a persistent concern. The upcoming CPI release will provide critical insight into inflationary trends and their potential impact.

Tomorrow's CPI is projected to come in at 0.4%, an increase from last month's reading of 0.3%. If confirmed, this could reinforce Federal Reserve Chair Jerome Powell’s hawkish tone from the latest FOMC press conference. Inflation has been a dominant bearish factor for markets over the past two years and is likely to remain a significant theme this year. Higher inflation could lead to fewer rate cuts, keeping the US dollar strong and limiting bullish momentum for risk assets like Bitcoin.

On the other hand, a lower-than-expected CPI reading could propel Bitcoin’s rally toward $100K. Combined with the anticipated market enthusiasm surrounding Donald Trump’s inauguration, such a scenario could create the perfect conditions for Bitcoin to test a new all-time high. Conversely, a higher inflation print would likely curb Bitcoin's current bullish momentum.

Stormrake Spotlight: Hyperliquid (HYPE) ($22.81)

HYPE has sustained its recent bullish streak, gaining 5.5% on the day and showing signs of continued strength. While much of the market remains in consolidation, HYPE stands out as a top performer.

Stay tuned for our next Spotlight feature, where we’ll explore a leading project in the burgeoning AI agent sector.

BTC/USD Key Levels and Price Action:

Bitcoin has maintained its strength, breaking above the critical $95.7K level and flipping it into support. BTC is currently consolidating above this level, with momentum favoring the bulls as it trades above all major moving averages. However, resistance looms at the dotted CPR level of $97.4K. We expect this level to act as resistance, with $95.7K serving as key support.

BTC Total ETF Flows for 14 Jan: $ (data not available)

ETH/USD Key Levels and Price Action:

Ethereum has shown signs of promise overnight, managing to break above the critical $3,207 level. It has also flipped the 21 EMA above the 55 EMA, signaling a return of bullish momentum. If ETH can breach the next resistance at $3,370, the bullish trend will likely resume.

ETH Total ETF Flows for 14 Jan: $ (data not available)

*All prices are denominated in USD unless stated otherwise*

Written by Alexandar Artis

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