In the past 24 hours, Bitcoin (BTC) has continued to experience heightened volatility, despite a brief market uptick in the short term. This surge in volatility is partly attributed to the ongoing liquidation process involving half a billion dollars worth of BTC by FTX and Alameda Research.
additionally, the increased demand from institutional investors has fueled bullish momentum in the market. According to the latest data from Tradingview and Coingecko, Bitcoin’s price surged by as much as 6.3 percent in the past day, reaching $26.4k.
However, the leading cryptocurrency has found stability around the support/resistance level of $25.9k during the early Asian market hours on Wednesday.
Key Factors Behind Bitcoin’s Price Surge
On September 12, asset management giant Franklin Templeton filed for a spot in Bitcoin ETF and proposed Coinbase as the custodian for this endeavor. This move by Franklin Templeton aligns with the growing trend among major firms like BlackRock, Valkyrie, and Ark Invest, all seeking to offer spot Bitcoin ETFs to their investors.
Later today, cryptocurrency traders will closely analyze data from the Bureau of Labor Statistics pertaining to the Consumer Price Index (CPI). The CPI provides crucial insights into overall inflation trends. Economists anticipate a 0.6 percent increase in the CPI month-over-month (m/m), compared to 0.2 percent in August.
Additionally, the CPI year-over-year (y/y) is expected to come in at 3.6 percent, up from 3.2 percent last year. Generally, an actual CPI figure surpassing these forecasts is perceived as favorable for the United States dollar but less so for Bitcoin.
BTC Price Action
Despite the occurrence of a daily death cross between the 50 and 200 moving averages, Bitcoin’s price has been forming a rising divergence concerning the daily Relative Strength Index (RSI). With Tuesday’s close above a crucial support/resistance level, experts are optimistic that the leading cryptocurrency is on a trajectory toward $27k in the near term, before potential downward pressure from bears in the coming weeks.