The CPI data from the United States confirmed that the country’s inflation rate had slowed to 6.5% at the time of publication. Following that, markets rose, with the S&P 500 Index (SPX) rising to $3983.16 from $3969.60 the day before.
Similarly, Bitcoin [BTC] rose, breaking through its mid-December high of $18.40K, but was met with a bearish order block at $19,046. A retest of this level is likely if US stock markets continue to rally on the back of slightly better-than-expected macroeconomic data.
Is a retest of $19,046 likely?
Bitcoin’s RSI has been hovering around the overbought zone since 7 January on the three-hour chart. Similarly, the OBV rose as well. However, at press time, RSI was slightly flat but in the overbought zone while OBV dipped.
This showed that buying pressure was strong despite being relatively stagnant at press time. Therefore, BTC could attempt to break above $18,835 and retest the bearish order block at $19,046.
BTC could trade within the red zone ($18.72K – $19.14K) in the next few hours or days. In an extreme scenario, BTC could break above the range and target $19.70K if SPX (S&P 500 Index) broke above $4000.
However, if bears force BTC into a downtrend, the seven-period (blue line) or 13-period EMA (orange line) could keep them in check. But such a move would invalidate the above bullish bias.
BTC’s open interest rose as the Exchange Flow Balance remained positive
BTC’s open interest rate has been increasing since 5 January. Therefore, more money flowed into the BTC futures market, which could further boost BTC prices.
As such, investors could expect a possible uptrend momentum that could boost BTC bulls to target $19.05K in the near term.
In addition, BTC saw an uptick in Whale Transaction Count with more than $100K and $1M between 7 January at the time of writing, which could have influenced the recent price surge.
Moreover, the Exchange Flow Balance remained positive at press time, showing more BTC flowed into exchanges than out. It could point to BTC demand due to its current bullish momentum.
Therefore, BTC could remain bullish and aim at $19.70K or $20K in the next few hours or days. But such an upswing could depend on SPX moving above $4000. So, investors should track S&P 500 Index (SPX) performance before making moves.