Bitcoin’s price has bounced back to the $100,000 mark, following an overdue reset in its funding rate and a strong spot bid return. The recovery has instigated a fresh wave of optimism, with some analysts predicting that Bitcoin is on its way to hitting the $110,000 benchmark. This initial surge began after a tumultuous beginning to the week, and was partially spurred by the recent Consumer Price Index (CPI) report.
The CPI report for November revealed an unexpected increase in US inflation rates. This is relevant to cryptocurrency traders, as they have historically been known to take a step back from trading leading up to CPI pronouncements and meetings of the US Federal Reserve’s Open Market Committee. They reenter the market upon analysis of the data outcomes.
A main factor supporting Bitcoin’s recovery was the Coinbase premium’s comeback, which alerted traders to the favourable spot bid for Bitcoin. This in turn suggested that Bitcoin’s price could scale up to the short-term range highs.
On December 11, the resurgence in spot bidding was complemented by strand-offs in the futures market, which additionally helped Bitcoin’s recovery above the $100,000 level.
Notwithstanding this recent rally, Bitcoin’s price appears to have reached a hurdle at the $101,500 level. According to futures liquidation data from CoinGlass, in order for Bitcoin’s price to move closer to its all-time high, traders must promote the price in this zone to catalyze another wave of liquidations.