Bitcoin breaks through 90 thousand USD, and the Coinbase premium index rises to a 7-month high. BTC may enter a consolidation phase in the short term.

Author: BitpushNews  On Wednesday, the Consumer Price Index (CPI) showed that the core CPI, excluding food and energy costs, rose by 0.3% for the third consecutive month. The overall CPI increased by 2.6% compared to the same period last year, marking the first year-on-year increase since March of this year. Following the release of the new data, investors increased their bets on the Federal Reserve cutting interest rates at the December meeting. The FedWatch tool from the Chicago Mercantile Exchange indicated that Wall Street has raised the likelihood of a 25 basis point rate cut at the December FOMC meeting to 82%. After the CPI data was released, U.S. stocks opened quietly and then rose slightly. Major indexes closed mixed, with the Dow Jones Industrial Average up 0.11%, the Nasdaq Composite down 0.26%, and the S&P 500 index essentially flat. The crypto market saw significant volatility, with Bitcoin earlier dropping to $86,300, followed by a rebound that set a new all-time high of $93,500 during the session. As of the time of publication, Bitcoin was trading at $90,451.16, up 2.91% in the last 24 hours. Another major news in the crypto space is Trump announcing the establishment of the Department of Government Efficiency (DOGE), which will be led by Elon Musk and Vivek Ramaswamy. This news spurred a surge in Dogecoin (DOGE), which soared to $0.44 on Tuesday and retested that resistance level on Wednesday.

Coinbase Premium Index Rises to 7-Month High  Data from CryptoQuant shows that the Coinbase premium index for Bitcoin (a key indicator of U.S. demand) has surged to 0.2, marking the highest reading since April, highlighting significant buying pressure from U.S. traders. This index measures the price difference of Bitcoin on Coinbase compared to the offshore Binance (the world's largest crypto exchange by trading volume), with Coinbase being widely used by U.S. investors and institutions. While it's currently unclear which types of market participants are buying, the volume for the spot Bitcoin exchange-traded fund (ETF) listed in the U.S. was strong at the day's opening. According to Barchart data, the BlackRock iShares Bitcoin Trust ETF (IBIT) is the largest spot ETF, with assets of $40 billion, and saw a trading volume of about $1.2 billion in the first hour of trading, making it the fourth-largest product by trading volume among all ETFs.

Short-term may enter a consolidation phase  According to Willy Woo, founder of the data platform Woobull and statistician, BTC may experience further consolidation between $88,000 and $91,000, before aiming for the next major resistance level of $102,000. Woo stated on the X platform that when Bitcoin breaks through its historical high, the market lacks historical data as a reference, leading to more volatile price movements. Therefore, technical analysts usually use tools like Fibonacci sequences and liquidation levels to predict potential resistance levels. Woo pointed out that Bitcoin's recent price volatility corresponds with Fibonacci and liquidation levels within the $88,000 to $91,000 range, indicating that the current price is in a relatively stable range. Looking ahead, Woo believes that $102,000 is the next significant technical resistance level. This target is derived from Fibonacci analysis based on historical cycle highs and current cycle lows.

Bitcoin still in early stages but expected to reach $500,000  Matt Hougan, Chief Investment Officer at Bitwise, wrote in a report to clients on Tuesday: "This is no longer the first inning. But it is still too early for Bitcoin to reach $500,000." Hougan stated that while a market pullback to a consolidation phase is expected, "it feels like $100,000 may be just around the corner." He also believes that $500,000 per Bitcoin is a correct dividing line between early and late stages, as it marks the true 'maturity' of Bitcoin, comparing it to gold. Hougan explained, "Currently, the total market capitalization of gold and Bitcoin is about $20 trillion. If Bitcoin can capture half of the market share, then based on the current circulation, the price per Bitcoin would reach $500,000." He further pointed out that the attitude of central banks is a key factor driving up Bitcoin's price. Hougan believes that if central banks include Bitcoin as part of their reserve assets, it would significantly boost Bitcoin's price. He highlighted the potential of this trend with reference to the "Bitcoin National Reserve" plan proposed by U.S. Senator Cynthia Lummis. The report stated, "If central banks start to follow suit, the target of $500,000 for Bitcoin will no longer be far off. But considering that Bitcoin may drive growth in the entire value storage market, along with the reality of increasing debt and money printing by governments, Bitcoin's long-term price potential is far beyond this. Even reaching $1 million or higher is possible."

Bitcoin breaks through 90 thousand dollars, and the Coinbase premium index rises to a 7-month high.

Bitcoin breaks through 90 thousand dollars, and the Coinbase premium index rises to a 7-month high.