Bitcoin moved toward one-week highs at the start of Tuesday’s Wall Street session as markets reacted positively to lower-than-expected US inflation data.
The largest cryptocurrency gained around 1.5% as December Consumer Price Index figures came in largely in line with forecasts.
Headline CPI matched expectations at 2.7%, while core CPI printed at 2.6%, slightly below anticipated levels.
US equity markets responded immediately, with the S&P 500 pushing to fresh record highs.
Traders pointed to improving inflation conditions as supportive for risk assets, including cryptocurrencies.
Market observers also highlighted the growing tension between President Donald Trump and Federal Reserve Chair Jerome Powell.
The Federal Reserve is widely expected to keep interest rates unchanged at its January meeting.
Trump has continued to publicly pressure the Fed to cut rates further, arguing that lower borrowing costs would boost economic growth.
Following the CPI release, Trump renewed calls for rate cuts, a move that could increase liquidity flowing into crypto markets.
He also suggested US trade tariffs have helped cool inflation, an issue currently facing legal scrutiny.
Traders Warn Of Heavy Resistance Ahead
As Bitcoin approached the $93,000 level, analysts cautioned that significant buying pressure would be required to break higher.
Several traders identified a dense resistance zone between roughly $92,600 and $94,000.
Volume-weighted average price levels were highlighted as forming a major technical barrier.
“The chop from the past few days has made it so there’s some decent liquidity built up on both sides,” said trader Daan Crypto Trades.
He noted that downside liquidity remains concentrated between $89,800 and $88,700.
Data showed nearly $170 million in crypto liquidations over a 24-hour period, reflecting heightened volatility.
Despite the range-bound conditions, traders broadly agreed that the current consolidation phase may not last much longer.
“No doubt that this current ~$90K-$92K range won’t last much longer,” Daan Crypto Trades added.
