Bitcoin (BTC) price led the wider crypto market in a mild rebound in the past 24 hours, following the U.S. CPI report that dropped to 2.8 percent below expectations of 2.9 percent. The flagship coin pumped around 2 percent in the last 24 hours to trade about $83,282 on Thursday, March 13, during the early European session.
As a result of the sudden pump, the fear of further crypto capitulation significantly declined. The Bitcoin fear and greed index jumped from 34 percent, denoting market fear, to around 45 percent, representing the neutrality of traders.
Bitcoin Chart Insights and Key Midterm Targets
Since Bitcoin price dropped below the crucial support level of around $92k, on-chain data from Santiment shows notable traders’ exhaustion. Furthermore, every dip has turned out not to be the expected bottom, thus leading to further downside risks.
From a technical analysis standpoint, Bitcoin price could experience a sharp V-shaped reversal in the coming weeks. In the daily timeframe, Bitcoin price has formed lower lows but the Relative Strength Index (RSI) has formed a bullish divergence.
According to crypto analyst Ali Martinez, Bitcoin price must hold above the 50-week Moving Average (MA) to avoid a historical capitulation towards the 200-week MA. Currently, the 50-week MA is hovering around $75.5k whilst the 200-week MA is hovering around $46k.
From a bullish perspective, Bitcoin price must consistently close above the resistance/support range between $92k and $95k to validate a rally beyond $109k. Furthermore, more than 1.2 million Bitcoin addresses, out of the 54 million on-chain holders, purchased 726k BTCs at around $95k.
Reasons to Remain Bullish Ahead
Bitcoin price will eventually follow gold price, which has rebounded towards its all-time high. Furthermore, the ongoing adoption of Bitcoin by nation-states, led by the United States, confirms the fact that BTC is digital gold.
Meanwhile, the U.S. spot BTC ETFs ended a two-week losing streak with a $13.3 million cash inflow on Wednesday. Despite BlackRock’s IBIT losing $47 million on Wednesday, ARKB saved the day with a net cash inflow of about $82.6 million.
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FAQs
Bitcoin surged 2% after U.S. CPI dropped to 2.8%, easing inflation fears and boosting market confidence.
Yes, Bitcoin is often seen as digital gold, and its price may rise as gold hits new all-time highs.
