Bitcoin and Ether’s prices pushed higher gaining 3.72% and 4% respectively following better-than-expected inflation data. The report states that November became the second consecutive month that inflation has risen at a slower pace than expected. This strengthens the perception that Federal Open Market Committee (FOMC) interest rate increases have a positive impact on taming inflation.
In the last four meetings, the FOMC raised interest rates by 75 bps. This has market participants hoping that the central bank will end its monetary hawkishness soon. The positive report has Bitcoin trading at $17,802 and Ether at $1,321. The broader market is in the green. Toncoin spiked 12.13% and Avalanche has been up by 7.12% in the last 24 hours. Solana is also among the biggest gainers, up by 6.28%. Shiba Inu gained 3.83%, Polkadot 2.96%, XRP 2.64%, Cardano 2.63%, and Polygon 2.61.
Il Capo of Crypto told his followers that he did not plan Bitcoin exposure despite the gains. He believes the CPI is better than expected but still high. The analyst said the price is testing a massive resistance zone and forming a lower high. Fejau, an analyst at Reflexivity Research, is being cautious. He said the CPI is coming down faster than expected and is bullish up until it turns into a deflationary panic in Q1 2023.
It’s yet to be seen whether BTC can take advantage of the rally and push forward to the psychologically important $20,000 support. Moreover, the topmost cryptocurrency is approaching its 50-day moving average of $17,895. Experts outlined that the 50-day moving average is within 15% of the 200-day moving average of $20,852. The $20,000 mark represents the on-chain realized price for the market participants. If BTC intend to overcome this, the price would be pushed past a significant technical resistance and key price point.