The upcoming US inflation report offers some familiar volatility as BTC price action hits six-day highs.
Market Update
Bitcoin (BTC) rallied nearly $1,000 in minutes on January 12 as encouraging signs emerged from exchanges.
Data from Cointelegraph Marketplaces Professional and TradingView shows BTC/USD hitting $43,468 on Wednesday, the highest level since January 6.
The pair has continued to show volatile moves, traders said, with increasingly biased in favor of a push higher rather than a fresh drop.
They argue that this could come in the form of a “short squeeze” against latecomers, and Wednesday’s sudden higher price seems to support this theory.
Funding rates on derivatives platforms have remained either neutral or negative during periods of volatility, further implying that the market has over-bets on fresh losses.
Prominent trader and analyst Scott Melker, better known as “Wolf Of All Street,” has reiterated his spot price targets for divesting BTC. He told Twitter followers that reclaiming the highs above $50,000 would then form a pivot to market entry.
My long leverage target from $39,800.
– 42K ✅
– 45.5 thousand won
– 4.66 thousand wonI’ll be out 75% by then, let’s leave the rest to see if we can hit $52k and then reevaluate.
Goals for my spot purchases:
– The wolf of all streets (@scottmelker) January 12, 2022
Meanwhile, in his Tuesday YouTube update, Cointelegraph contributor Michaël van de Poppe flagged $43,000 as a potential springboard for a trip to $46,000, thanks to a lack of lack of resistance in the middle.
“I still get buy orders for $38,000 they won’t be affected, but I bought a lot here,” he said.
Meanwhile, upcoming US consumer price index (CPI) data on Wednesday, due at 8:30 a.m. ET, could provide fresh fuel for the flame if inflation unexpected decrease.
Ether among the major flyers of major altcoins
Following on from Tuesday, altcoins capitalized on Bitcoin’s nascent strength.
Related: Biggest daily spike in bitcoin exchange outflows since September 2021
The top 10 cryptocurrencies by market capitalization are up 4% on the day, led by Polkadot (DOT), Terra (LUNA) and Ether (ETH).
Monday’s price is up more than 5% at press time, firmly heading away from the $3,000 support.
In the past, warnings have been issued for altcoins worldwide, with tokens yet to experience “real pain” during the current drop.