Cryptocurrency MarketThe time is here, the Total Crypto Market Cap is close to breaking out from the $844 billion resistance area and will reach its highest price since Nov. 7. Bitcoin’s price broke out from an important Fib resistance. Avalanche prices increased from a descending wedge.
The year started with some positive crypto market news as one of the world’s leading cloud computing service providers, Amazon Web Services (AWS) officially announced a partnership in order to facilitate the adoption of blockchain technology in multiple industries. The collaboration will make it much simpler for users to launch nodes on Avalanche, the Layer-1 blockchain.
Finally, the crypto market is up today which actually reflects market participants’ expectations that inflation is now slowing down ahead of U.S. CPI data. Whereas, Bitcoin and some other altcoins are anticipating fresh United States economic data this week.
A new shift is expected in crypto volatility
Data from prestigious sources confirmed BTC/USD reached its highest since Dec. 16, 2022. Well, despite the success of the recent performance, the longevity of the strength remains in question as investors are waiting for the comments from the Federal Reserve which should further clarify future policy, including the size of interest rate hikes.
Considering the position of Crypto and equities markets, they responded positively ahead of the nonfarm payrolls report and the cooling supply chain. This is what’s happening now, odds are in favor of Consumer Price Index (CPI) data for December 2022 boosting the prevailing narrative that U.S. inflation has peaked.
Besides the recent uptrends, the crypto market is still relatively down from its all-time highs, but only Ether’s price went up by rallying to a near 1-month high. Furthermore, with Bitcoin’s lowest volatility in the year, some industry experts believe that price whipsaws are on the verge of returning.
Investors and traders are confident about the CPI crypto boost
The CPI release of 2023 is going to make things more clear as it is widely expected to support the reduction in inflation. However, surprises could possibly spark additional volatility across crypto and risk assets. Some industry analysts are anticipating a figure of less than 7%.
Low bitcoin volatility seems to be giving traders some confidence in altcoins as Bitcoin price consolidation has laid the groundwork for market-wide altcoin rallies in past. In such a situation, some groups of traders believe in TA components like convergence between moving averages, market structure, and various support and resistance levels. Volatility is back as 2023 gets underway, providing opportunities and contrast for traders facing barely any movement in either Bitcoin or altcoins.
Total Cap strive Long-Term Breakout
The crypto market cap achieved a double-bottom pattern within the $752 billion support area. The double bottom is actually a bullish pattern, meaning that it indicates upward movements most of the time.
The cryptocurrency total market cap began an upward movement shortly afterward breaking out from the $770 billion resistance area. Now, this accelerated the escalation toward the next resistance at $807 billion, which is a horizontal resistance area.
The cryptocurrency market cap further improved and was in the process of breaking out from the $844 billion resistance area. The upward movement toward $940 billion was expected and for now the global cryptocurrency market cap today is $947 Billion.
Conclusion
Overall, it would not be wrong to say that crypto markets are likely to continue experiencing price whipsaws and most industry analysts and experts are optimistic about the future and agree that there are plenty of volatile days ahead.
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