Bitcoin price held steady above the key support level at $90,000 as traders waited for the upcoming US inflation report, SCOTUS ruling on Donald Trump’s tariffs, and the CLARITY Act.
Summary
- Bitcoin price remained in a tight range on Sunday.
- The United States will release the latest US inflation report on Tuesday.
- The Senate will have a markup of the CLARITY Bill this week.
Bitcoin (BTC) was trading at $90,590 on Sunday, a few points below the year-to-date high of $94,470. It remains much higher than the November low of $80,000.
Bitcoin will have three main catalysts this week. First, the Bureau of Labor Statistics will publish the latest consumer price index data on Tuesday. Economists polled by Reuters expect the report to show that the headline and core CPI rose 2.7% in December.
A higher inflation report will be bearish for Bitcoin as it will raise the possibility of the Federal Reserve maintaining higher interest rates for longer.
On the other hand, a weaker report than expected will raise the possibility of the Fed cutting rates more times this year. Besides, a report released on Friday showed that the unemployment rate fell to 4.4% in December as the economy created 55k jobs.
Bitcoin price will also react to the upcoming markup of the Market Structures Bill, commonly known as CLARITY. The coin will do well if there are signs that the Senate will pass it soon. The bill seeks to create clarity in the crypto industry by separating roles between the SEC and the CFTC.
The other notable catalyst will be the SCOTUS ruling on Donald Trump’s tariffs. The court will rule on whether the tariffs are legal or not. If they are illegal, Trump will have other options to achieve the same result.
Bitcoin price technical analysis
The daily chart shows that the Bitcoin price has formed a highly bullish pattern, meaning that a rebound is possible this week. It has formed an ascending triangle pattern, which is made up of a horizontal resistance and an ascending trendline.
Bitcoin has also moved above the 50-day Exponential Moving Average. Therefore, a rebound above the key resistance level at $94,468 will confirm the bullish outlook and point to more gains, potentially to the psychological level at $100,000. This target coincides with the Major S&R pivot point of the Murrey Math Lines tool.
Credit: Source link
