Bitcoin Price Rebounds Above $99,000 Amid Positive Market Metrics
Bitcoin (BTC) has rebounded to over $99,000 after a significant dip earlier this week. Analysts attribute this recovery partly to the recent US Consumer Price Index (CPI) data.
Key Insights from Market Analysis
- Crypto Dan from CryptoQuant analyzed Bitcoin's Short-Term Spent Output Profit Ratio (SOPR).
- SOPR has shown a pattern during corrections, usually indicating reduced market optimism before rebounds.
- The current SOPR indicates less profit-taking compared to previous corrections, suggesting a potentially shorter correction period.
- Dan predicts that Bitcoin may resume its upward trend within the first quarter of 2025.
- Short-term volatility is still a risk, with potential for sharp drops before any sustained reversal.
Current Market Performance
Bitcoin is currently trading at $99,494, reflecting a 2.7% increase in the past day. This rise is linked to favorable metrics on the BTC network and the latest CPI update, which reported a 0.4% increase in December, leading to a decline in the US Dollar.
