Bitcoin (BTC) rose 6% in the past few hours to above $66,000 and surpassed its 200-day moving average, following a period of consolidation over the weekend.
This breakout is attracting traders’ attention, especially after several failed attempts to break above this key level recently. According to Bitget Chief Analyst Ryan Lee, the focus now is on whether Bitcoin can sustain its momentum or face another pullback.
“Bitcoin’s rise above $65,000 is significant, especially considering the recent coin accumulation and renewed optimism about the US presidential election,” Lee said, noting factors contributing to the positive market sentiment.
The rally in the cryptocurrency market coincides with positive inflation data from the US Producer Price Index (PPI). The PPI report released on Friday showed a 0% figure, lower than the 0.1% increase expected, indicating easing inflationary pressures. The Core Consumer Price Index (CPI), which excludes volatile items such as food and energy, also came in below expectations at 0.1%, compared to estimates of 0.2%. The annual PPI rate came in at 1.8%, further supporting investor sentiment towards riskier assets such as cryptocurrencies.
Positive inflation data could act as a catalyst for Bitcoin’s continued upward movement, Lee said. “The PPI report eased concerns about rising inflation from the previous CPI release. This helped support Bitcoin’s current rally and could pave the way for year-end volatility,” he said.
Looking ahead, Lee predicts Bitcoin will trade in the $50,000 to $80,000 range by the end of the year, with wider swings possible in the first quarter of 2025. “If fundamental economic indicators remain positive and Bitcoin breaks through current resistance levels, we could see further upward momentum, especially as various market catalysts come into play,” he added.
*This is not investment advice.