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BTC gains after Powell’s remarks

Bitcoin advanced 2.17% to $ 42,729 on Tuesday, January 11. The active phase of the BTCUSD uptrend was seen during the North American trading session. The US dollar weakened against G10 FX currencies after the testimony of Federal Reserve Chairman Powell before the Senate Banking Committee. Powell made it clear that the Fed has yet to make a decision on running down its $9 trln balance sheet. During the Q&A session, Powell pointed out that private cryptocurrencies – including stablecoins – and a central bank digital currency (CBDC) would be able to coexist.

Investors were relieved that Powell’s testimony brought no major surprises. All eyes are now on today's US CPI data. Heightened volatility should again be expected during the North American session after the CPI release (16:30 GMT+3). Lower inflation would trigger dollar selling and a retreat in 10-year UST yields.

The BTCUSD pair approached the $43,500-43,700 resistance zone. To muster a strong rebound, buyers will need support from the US equity market and the FX market. The technical picture on the hourly timeframe look favorable for a quantum leap up to $45,500.

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