The U.S. Labor Departme's latest report on Tuesday showed that the coury's consumer price index (CPI), the main measure of inflation, rose 0.1 perce in November, for a year-on-year increase of 3.1 perce.
Although the mohly rate showed a slight increase compared to the US CPI index in October, the annual rate showed a slight decrease from the 3.2 perce recorded in the previous moh.
Following the publication of these data, the Saime analytical team emphasized that it is likely that we will see fluctuations in the price of digital currencies in the short term. Meanwhile, according to Seime, there are many signs of a bear market.
At the time of writing, the price of Bitcoin (BTC) is back below the $41,000 level with a 2% drop and is trading in the $40,970 range. The selling pressure is quite visible and we may still see the price drop below $40,000.
Meanwhile, on-chain data published by Seime shows a significa trend. Bitcoin shows a mild return to exchanges, reflecting uncertaiy among traders. In corast, the increased presence of Tether (USDT) on exchanges, with an increase of 6.9% compared to six mohs ago, acts as a positive indicator for bullish seimes in the market.
Meanwhile, promine crypto market analyst Ali Martinez has ideified a strong support zone for Bitcoin between $37,150 and $38,360 in the face of possible further corrections. This support is proven by the participation of 1.52 million addresses that have purchased a total of 534 thousand bitcoins. In addition, Martinez has reported on two resistance walls blocking Bitcoin's upward trend, at the $43,850 and $46,400 levels.
Notably, following the rece decline in the price of Bitcoin, there has been a significa increase in the number of eities holding 1,000 Bitcoins or more. This bullish trend suggests that whales have taken the rece price drop as an opportunity to capitalize and are accumulating more cryptocurrency.
All eyes are on the Federal Reserve!
Market participas predict that policymakers will finally announce an end to their curre tightening after raising ierest rates 11 times since March 2022. While some market forecasts poi to a pause in rate hikes, with a possible rate cut in the future, Federal Reserve analyst Jim Gra still sees rates staying high, with no cuts in the near term.
The next meeting of the Federal Open Market Committee (FOMC) is scheduled for December 13, 2023. According to the CME Fedwatch tool, there is a 98.4 perce chance that the Fed rate will remain unchanged and only a 1.6 perce chance of a hike.
