Bitcoin spiked 9.55%, will it continue?

Bitcoin (BTC) benefited from recent developments in the US. Cryptocurrency jump above $24374 following the United States inflation and retail sales numbers. And jitters of interest rates from Federal Reserve officials also weighed sentiment.

Data showed U.S. consumer prices accelerated in January. As Americans continued to be burdened by higher costs for rental housing. Which suggesting that Fed was far from pausing its rate increase campaign.

The consumer price index increased 0.5% last month after gaining 0.1% in December, the Labor Department said. In the 12 months through January, the CPI increased 6.4%, more than the 6.2% forecast by economists.

U.S. retail sales released yesterday also stood stronger than expected. Data was up 3% in January to log the largest increase in almost two years, much higher than expectation 1.9%..

Bitcoin and the crypto asset class, in general, have begun the year strongly on the back of cooler economic data that has hinted that interest rate increases in the United States may end soon and inflation has maxed out.

Technical – Bitcoin cross its massive resistance

 Bitcoin gained 1.30% since morning and traded at $24654 against its previous day’s close of $24332. Yesterday, a price was able to cross above its immediate resistance of $24280.

Bitcoin and the crypto asset class, in general, have begun the year strongly on the back of cooler economic data that has hinted that interest rate increases in the United States may end soon and inflation has maxed out.

On the Daily chart, formation of a long bullish candlestick is indicating bullish momentum in the near future. MACD also, giving a positive divergence which also supports it.

In near future, any dip towards $24350-$24250 is expected to attract buying activities. Bitcoin may test the next resistance $25150-$25750.

Alternatively, on the downside crucial support is seen at $23000. A break below only Bitcoin could retreat towards immediate support $22550-$22100.