CPI is coming, with institutional funds backing, can BTC bulls remain unscathed?

Author: BitpushNews

The cryptocurrency market continued to adjust on Tuesday.

According to Bitpush data, BTC fell by 0.45% in the past 24 hours, maintaining above $96,000 at the time of writing. Altcoins experienced a broad decline, while XRP, among the established coins, rose against the trend, with a nearly 8% increase in 24 hours.

Ruslan Lienkha, market director at Youholder, stated that the overall market pullback may be a reaction to the inflation data expected to be released on Wednesday. He said, "The market expects inflation to rise slightly. However, if the CPI data exceeds expectations, it could exacerbate the ongoing adjustments in the financial markets. In this case, the timing and possibility of the Fed's interest rate cuts will become a key focus in the new year."

"The market lacks confidence"

Famous trader Skew commented on X: "It seems that bulls are exiting / taking profits here. Further confirmation that $97,700 - $98,000 is critical for buyers to break even. This usually indicates that the market currently lacks confidence in the price until it strengthens further."

The crypto technical analysis team More Crypto Online warned that after reaching $94,000 the previous day, another local low may be created. Their latest tweet on X stated, "There is still a possibility of another low. After another low, the white wave d may test $100,000 again."

Bitcoin ETF unaffected by BTC price fluctuations

Data from Farside Investors shows that the daily net inflow amount for the U.S. spot Bitcoin exchange-traded fund (ETF) continues to reach millions of dollars, with nearly $500 million in inflows on December 9 alone.

Trading firm QCP Capital wrote in its latest market report on its Telegram channel: "Bitcoin suffered a $1.5 billion hit during the long liquidation, plummeting $3,000, and then rebounding from the critical support level of $95,000. Currently, the trading pair is consolidating around $97,000 - $98,000, with altcoins following closely. However, BTC and ETH spot ETFs have performed impressively, achieving net inflows for 8 and 11 consecutive days, respectively."

What’s next for the market?

Current market sentiment suggests that Bitcoin's upward journey is far from over. Analysts like Doctor Profit believe that the recent sideways consolidation is just a brief pause, and Bitcoin's price is likely to break through the target range of $125,000 to $135,000.

Historical data shows that the price fluctuations of Bitcoin are quite evident. In past bull markets, Bitcoin has experienced multiple 20%-30% pullbacks, followed by strong rebounds, ultimately reaching new highs.

As for altcoins, Michaël van de Poppe believes that altcoins are about to break free from the longest bear market. He thinks that with the expectation of a weaker dollar and increased liquidity, altcoins seem ready for a significant surge.

Charts released by Kaizen show that if compared to the situation in December 2020, when altcoins fell by 30% and then experienced a three-month rebound with over 400% gains. Recently, altcoins have dropped by 25%, which, based on historical data, could be a precursor to explosive growth.