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Bitcoin price returns to $21,000; Solana returned to the 11th rank of the market

Bitcoin_Touches_$21,000,_Shattering_Historic_Line_of_Resistance_and_Erasing_FTX_Gap_

As the US Consumer Price Index (CPI) fell on Thursday and global markets rallied, the price of Bitcoin was able to return above $21,000 for the first time since the collapse of the FTX exchange. At the same time, altcoins also had a good growth. At the same time, the total value of the cryptocurrency market returned to the border of 1 trillion dollars.

According to Mihan Blockchain and quoted by Cointelegraph, on Thursday, the consumer price index (CPI) of the United States was announced in December (Azer), which was almost equal to expectations. The month-to-month inflation rate in this statistic was negative 0.1%, and the year-to-year inflation rate decreased by 0.6% to 6.5%. At the same time, the world stock markets also grew, so that the S&P500 index reached the 4,000 point mark with an increase of about 2%.

Following these events, the price of Bitcoin, which had previously reached more than $17,300, was able to overcome the heavy resistance of $18,200. But this was not the end of the story and the excitement created in the market last night caused BTC to increase by about 7% to $21,258. The growth of the market caused the total value of the cryptocurrency market to return to the $1 trillion mark.

This is the highest price of Bitcoin since the collapse of the FTX exchange. At the same time, altcoins also showed good growth. The price of Ethereum is now at $1,553 with an increase of about 10%, and the price of BNB has increased by 8% to $312. But the biggest growth among the prominent projects was related to Solana and Compound. The price of Solana has increased by 39% to $23 and this cryptocurrency has returned to the 11th market position. The compound price has also increased by 37% to $53.

But the increase in the price of Bitcoin caused this cryptocurrency to strongly break its downward trend line that had been standing since September. Some analysts believe that we should wait for a pullback to this line to continue the upward trend. This trend line is now around $19,900.

Daily Time Frame Bitcoin Price Chart Source: TradingView
Daily Time Frame Bitcoin Price Chart Source: TradingView

Trader SZ is the name of one of the prominent analysts who a tweet He announced that the dollar strength index (DXY) has reached its support range and it is possible to increase it and, of course, correct the price of Bitcoin. DXY index It is now at level 102. This analyst has considered the 3 levels of $18,200, $20,000 and $21,500 as the 3 key levels of the price of Bitcoin, between which there is a possibility of Bitcoin suffering, which from a bullish point of view can represent a pullback to these levels.

Bitcoin price chart 2-hour time frame Source: Twitter
Bitcoin price chart 2-hour time frame Source: Twitter

Many other analysts have attributed the price pump of Bitcoin to short squeezes and it is a kind of cow trap have called

Do you think that the overall trend of Bitcoin is bullish or that its price increase was a kind of bull trap for traders? Share your opinion with us below this post.

Cointelegraph

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