Bitcoin surpasses $44,000 as US inflation tops 7% in December
As seen on the TradingView charts, Bitcoin topped $ 44,000 on January 12, its highest level since January 6. Market sentiment improved after news release inflation statistics, which saw the consumer price index rise by 7% during the year through December.
According to the most recent figures from the U.S. Bureau of Labor Statistics, inflation in the United States reached an estimated 7% in December, roughly in line with expectations for the month. Following the official release, Bitcoin rose above $44,000.
The Consumer Price Index rose 7% in the 12 months to December, and 5.5% after volatile prices such as food and fuel were removed. In 1982, the primary inflation index exceeded 7% for the first time.
Rising inflation is seen as a positive for Bitcoin price action, as most traders believe the leading asset may serve as an effective inflation hedge.
The first reassuring remarks from Fed Chairman Jerome Powell reassured lawmakers and investors that the Fed would be able to lower inflation without causing significant economic damage.
He stated that rate hikes might occur throughout the year, signaling that the Fed would not need to raise rates much more aggressively than what was already expected.
The Crypto Fear & Greed Index is currently at 22 out of 100 points, a slight improvement from last week, although still in the ‘extreme fear’ zone.
Bitcoin price reversal in play?
Cryptoanalyst Will Clemente notes, ”Bitcoin entering the Buy Zone on Dormancy Flow. This bottoming signal has only flashed 5 times before in Bitcoin’s history.”
As bearish pressure eases, BTC / USD pushes for a green day to justify the bullish Doji Dragonfly candlestick formed on the daily chart on January 10th.
According to some experts, Bitcoin has already bottomed out, and these are zones where a candlestick with a long tail signals support. Overall, BTC seems to be finding its footing above $43,000, preserving its bullish tone.
