- Bitcoin price prints a new high for December after rallying by 7% on the week.
- Ethereum price moved in unison with BTC and tagged a key level of interest.
- XRP price has stayed the same, which hints the digital remittance token may be decorrelating from the market.
The crypto market has shown strength following the US Consumer Price Index data release, which came in lower than expected. Key levels have been defined to gauge where bulls in the market may be aiming.
Bitcoin price fights back
Bitcoin price has shown applaudable price action as the bulls have pulled off a 7% rally. On December 13, the peer-to-peer digital currency spiked to the $18,000 level after finding support from the 8-day exponential moving average. As a profit-taking consolidation occurs, traders are forced to consider the idea that the BTC rally will continue.
Bitcoin price currently auctions at $17,784. The rally is interesting as November’s US Consumer Price Index (CPI) came in lower than expected. At 7.1% for November, the index read lower than October’s 7.7%. The CPI is a metric used by the Federal Reserve to measure inflation. As a result of the downtick, risk-on assets like BTC have enticed investors to bid for short-term gains in anticipation of a Santa Rally.
BTC/USDT 1-Day Chart
If the market is genuinely bullish, the next target will be the 50% retracement level at $18,245 and the 61.8% Fib retracement level just below the psychological $19,000 level. The fib levels are based on November’s swing high to swing low on the logarithmic scale.
The uptrend scenario will be void if the bears pierce through the previous congestion zone near $16,900. The bears could prompt a decline towards the yearly low at $15,476 if the bearish scenario occurred.