Bitcoin (BTC) has seen a 6.6% increase in value, crossing the $100,000 mark once again following the release of the US Consumer Price Index (CPI) data that met expectations. The U.S. Bureau of Labor Statistics recently reported that the CPI had risen by 0.3% in November, marking a 2.7% year-on-year increase, in line with forecasts.
This news led to a positive market response as investors anticipate further rate cuts by the Federal Reserve due to the supposedly under-control inflation. As a result, Bitcoin, Ethereum (ETH), Solana (SOL), and most of the top 100 digital assets experienced a rally.
Crypto analyst TechDev, known for his insights on market trends, shared with his 488,000 followers on X a significant observation regarding Bitcoin’s potential for gains. According to TechDev, based on the Chaikin Money Flow (CMF) indicator, which measures accumulation and distribution volume, BTC is entering a phase where significant gains are expected. He noted that this could be the first time in eight years that such gains are anticipated.
Additionally, TechDev highlighted an OTHERS chart, which excludes the top 10 digital assets and measures altcoin strength. He pointed out a classic Wyckoff accumulation pattern on the chart, indicating a potential upward trend for altcoins in the near future.
Drawing parallels to early 2021, TechDev noted similarities in the market conditions of Bitcoin, Ethereum, and Dogecoin (DOGE), as well as a shift in Bitcoin dominance (BTC.D). These similarities suggest a possible altcoin season on the horizon, similar to the historic run witnessed in early 2021.
TechDev’s analysis indicates that BTC is currently in week 5 of price discovery, ETH is 20% below its all-time high, DOGE is showing signs of stabilization, and BTC.D has reversed. These conditions mirror those observed in early 2021 before the significant altcoin surge that followed.
In conclusion, TechDev advises investors to prepare for potential market shifts and capitalize on the upcoming opportunities in the cryptocurrency space. As market conditions evolve, staying informed and proactive will be key to navigating the volatile crypto landscape.
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