Bitcoin Consolidates After Resistance at $90K

CoinDesk 20 Index: 2,598.80 -1.86%

Bitcoin (BTC): $87,804.73 -0.04%

Ether (ETH): $3,166.56 -3.78%

S&P 500: 5,983.99 -0.29%

Gold: $2,611.13 +0.00%

Nikkei 225: 38,721.66 -1.66%

Bitcoin (BTC) has stalled at the $90,000 resistance level as currency investors focus on the rally in the dollar index (DXY), raising the risk of financial tightening that usually weighs on risk assets. According to CoinDesk data, bitcoin, which rose enthusiastically to $ 90,000 early yesterday, fell to $ 85,000 in a short time. After a staggering $20,000 price increase in just one week, it is quite normal for such a pause and pullbacks from all-time highs to occur. According to data shared by QCP Capital, such pauses usually mean that bulls are charging for the next rally and traders in the options market are positioning for a potential breakout of $110,000-120,000.

The release of October US consumer price data could signal a period of change in sentiment in the cryptocurrency market. The report is expected to show that the cost of living rose 2.6% year-on-year last month, following a 2.4% increase in September. The release of inflation data brought downward volatility to bitcoin in the first quarter, and BTC showed a negative performance as inflation was announced as almost twice the target. Bitcoin, for example, fell as much as 7.5% on January 12, when the US reported the highest figure since June 1982.

The event that pushed Dogecoin (DOGE) prices over 500% has finally happened, showing everyone that the cryptocurrency that started as just a meme can turn into a powerful trading network. President-elect Donald Trump announced yesterday that he has chosen Vivek Ramaswamy and Elon Musk to lead the Department of Government Efficiency (DOGE), which aims to make government spending and management more efficient. The pair will work without being directly involved with the government to provide advice and guidance to drive large-scale structural reforms and provide “a never-before-seen entrepreneurial approach”.

The “crypto money printer”, represented by daily USDT printing, continues to operate at full capacity. This shows that the bulls have plenty of resources ready to pour into the market.Source: Glassnode