Bitcoin aims for 102 700 amid lower inflation in US

In the first half of January, BTCUSD showed strong volatility, fluctuating from 89 272.79 to 102 724.37.

Earlier this year, bitcoin experienced a drop caused by rising US Treasury bond yields. However, it is recovering amid the release of the producer price index (PPI). Actual PPI growth was 0.2%, which is below expected 0.4%. This decline may indicate slowing inflation, which in turn decreases the pressure on the Federal Reserve (Fed), allowing more rate cuts. It contributes to investors' rising interest in risky assets, including cryptocurrencies.

Additionally, bitcoin is supported by the selection of Tom Emmer as the head of the Subcommittee on Digital Assets. His support of liberalization in this area creates a more favorable environment for the cryptocurrency market development. The interest in crypto assets is also growing amid new US president Donald Trump’s loyalty to cryptocurrencies and the increasing number of advocates for a better regulatory environment in Congress. 

Besides, the potential authorization of a bitcoin ETF in Thailand can increase the legitimacy of the cryptocurrency on the global level, boosting demand for the asset.

The nearest important event affecting the quotes is the release of the US unemployment rate and retail sales. The data is expected to confirm decelerating inflation, spurring further growth of bitcoin price. 

The technical analysis shows an uptrend, and RSI indicates that the asset is not overbought. However, according to the MACD indicator, a bearish divergence may occur soon. The current conditions suggest BTCUSD growth weakening, but the situation should be monitored in order not to miss the possible beginning of a fall.

Suggested options for trading: 

Buy BTCUSD in the range of 96 450.00 to 98 278.00. A profit-taking target is at 102 700.00 and a Stop loss is at 96 450.00.