Article source: BitPush
After the release of the US November Consumer Price Index (CPI), both the US stock market and the cryptocurrency market rose in response.
The US November CPI rose 2.7% year-on-year, higher than October's 2.6%, in line with market expectations. The monthly CPI for November increased by 0.3%, slightly above last month's 0.2%. Among them, the core CPI rose by 3.3%, unchanged from October.
According to the FedWatch Tool, the probability of the Federal Reserve cutting interest rates by 25 basis points next week has risen to over 96%.
As of Wednesday's close in the US stock market, the Dow initially fell by 0.2%, the S&P 500 index rose by 0.8%, and the Nasdaq rose by 1.77%, breaking the 20,000-point mark for the first time. Tesla (TSLA.O) and Google (GOOG.O) both rose over 5.5% and hit new highs.
In the cryptocurrency market, Bitcoin has risen above $101,000, increasing over 6% in the past 24 hours, while XRP, Solana (SOL), and Cardano (ADA) rose by 23%, 11%, and 16%, respectively.
Meme coins like Dogecoin (DOGE), Shiba Inu (SHIB), dogwifhat (WIF), BONK, and FLOKI have all achieved double-digit gains. AI concept tokens have risen by over 7%, with leading AI coins like NEAR, ICP, and Render seeing gains of over 10%.
Institutions are buying the dip
Data from Sosovalue shows that institutional investors are seizing the opportunity to buy the dip. On December 10, the inflow of funds into the US spot Bitcoin ETF was $439.5 million. The inflow into the US spot Ether ETF reached $305.7 million, the third largest daily inflow in history.
Arkham monitoring data shows that in the past 48 hours, BlackRock and Fidelity ETFs purchased ETH worth over $500 million.
Trader: The next target for BTC is around $112,000
Renowned trader Skew pointed out that the current market is in a state of supply-demand balance and emphasized that there are 'passive buyers' supporting the price. In addition, he also mentioned that there is strong buying and selling at around $97,000 on Binance, the world's largest cryptocurrency exchange.
Another trader, Roman, analyzed from the daily chart perspective and believes that the Relative Strength Index (RSI) has completely reset, indicating that Bitcoin may experience a strong upward trend, targeting around $112,000.
Noted trader Johnny also stated that Bitcoin has repeatedly rebounded around $95,000, showing strong support and is expected to continue rising in the future.
Chart analyst Upadhyay believes that Bitcoin's price has rebounded strongly from the 20-day moving average (approximately $96,133), indicating that bullish strength remains strong. If it can effectively break through the resistance range of $101,351 to $104,088, it will further confirm the upward trend. At that time, Bitcoin is expected to challenge $113,331 and even the $125,000 mark.
However, if the price falls below the 20-day moving average, it may trigger profit-taking sell-offs, causing the price to retreat to around $90,000. Therefore, $90,000 is the focal point of contention between bulls and bears, and it is also an important support level.
Overall, multiple analysts hold an optimistic attitude towards Bitcoin's future trend. Although the market may experience some volatility in the short term, the overall trend remains bullish.
