The global cryptocurrency market saw strong gains, led by Bitcoin. In the past 24 hours, the global cryptocurrency market value rose by about 2.3% to $2.06 trillion. The price of Bitcoin soared to $58,281, driven by positive economic news and growing interest in Bitcoin-related products.
The total cryptocurrency market capitalization (TOTAL) has continued to recover over the past few days and has now broken through a key level. The price of Bitcoin (BTC) is following the same trend and is approaching $59,000. Among altcoins, SUI has become the leader with an increase of 11.56%.
US CPI data fell to 2.5%
A key factor driving the rise in Bitcoin prices is the latest Consumer Price Index (CPI) report from the U.S. Bureau of Labor Statistics. CPI inflation fell to 2.5% in August from 2.9% in July. This was lower than the expected 2.6%, indicating that inflation is easing.
Core CPI inflation, which excludes volatile goods such as food and energy, also fell to 3.2%. Lower inflation could spark more interest in Bitcoin, as it is often seen as a protection against rising prices.
Spot Bitcoin ETF funds continue to flow in
Another driver of Bitcoin’s rise is the increasing inflows into spot Bitcoin exchange-traded funds (ETFs). According to data from blockchain analytics platform Lookonchain, on September 11, 10 Bitcoin ETFs saw inflows of $44.32 million.
Cryptocurrency market performs well
The total cryptocurrency market capitalization broke through the key resistance level of $2.00 trillion, showing strong market resilience. Total broke through the resistance level despite facing almost $70 billion in losses in intraday trading on Wednesday. The breakthrough is a good sign for cryptocurrency investors and indicates that the market is regaining strength.
A continued rebound from this level could push the total market capitalization down to the next resistance at $2.11 trillion. Historically, this area has been difficult to break through, usually leading to consolidation between $2.00 trillion and $2.11 trillion. If this pattern repeats, the market could see sideways trading, which could curb short-term bullish sentiment.
On the other hand, failure to sustain above $2.00 trillion could lead to a market correction. A decline could bring the total cryptocurrency market capitalization back to the $1.93 trillion support area.
Bitcoin price rises
Bitcoin’s price defied bearish predictions after rising 6.2% over the past week. A right-angled descending expanding wedge pattern signaled a decline, but BTC showed resilience. The move encouraged bullish sentiment across the market, increasing interest in Bitcoin as a key market mover.
Currently trading at $58,320, Bitcoin aims to push to $58,986 as support. Achieving this target will open the doors for further gains, with $59,000 being the next potential support. A successful test of $58,986 is likely to strengthen short-term price momentum.
Broader market bullish sentiment could intensify if Bitcoin breaks above $59,000. Such a move could boost investor confidence and increase the likelihood of Bitcoin rising to $60,000. As Bitcoin prices continue to rise, other cryptocurrencies are likely to follow, signaling a longer-lasting bull run for the entire market.
SUI is the leader
The price of SUI has surged 11.56% in the past 24 hours and is currently trading at $1.02, eyeing the key $1.05 resistance level. Despite the market optimism, there are concerns that SUI may not be able to break through the $1.05 resistance level again.
This price point has been a difficult barrier to overcome over the past five weeks, with multiple attempts to break through failing. Historically, similar sharp advances have seen the SUI attempt to break through, only to eventually pull back. With volatility still high, this pattern is causing caution among traders.
If the SUI repeats its past performance and fails to break out of $1.05, a drop to $0.90 is possible. However, a successful breakout could invalidate the bearish outlook, allowing the SUI to rise to $1.10 and even higher.
