Global Market Highlight
In December 2024, the U.S. economy displayed signs of slowing inflation. The Producer Price Index (PPI) increased by 0.2% month-over-month, falling short of the forecasted 0.4%, indicating a deceleration in producer price growth. Similarly, the Core Consumer Price Index (Core CPI), which excludes food and energy prices, rose by 0.2%, below the expected 0.3%. Meanwhile, the Consumer Price Index (CPI) climbed 0.4% month-over-month, matching forecasts, and grew 2.9% year-over-year, reflecting steady inflation compared to December 2023.
In the energy sector, the Energy Information Administration (EIA) reported a significant drop in U.S. crude oil inventories. Stockpiles decreased by 1.96 million barrels for the week ending January 10, 2025, a larger decline than anticipated, suggesting stronger demand or tighter supply, which could provide upward pressure on crude oil prices. Consumer spending showed signs of moderation as retail sales grew slower than expected. Overall retail sales increased by 0.4% month-over-month, below the forecasted 0.6%, while Core Retail Sales, which exclude automobile sales, rose by 0.4%, slightly missing the 0.5% projection. These figures contrast with November’s more robust retail growth of 0.8%.
The labor market experienced mixed signals, with Initial Jobless Claims rising to 217,000 for the week ending January 10, 2025, an increase of 14,000 from the previous week’s revised level of 203,000. However, the four-week moving average, which smooths week-to-week fluctuations, edged down to 212,750, indicating overall stability despite the weekly rise.
In contrast to slowing inflation and retail sales, the manufacturing sector posted a strong rebound. The Philadelphia Fed Manufacturing Index surged to 44.3 in January 2025, its highest level since April 2021, sharply recovering from December’s negative reading of -10.9. This figure far exceeded the expected -5, signaling robust growth in the mid-Atlantic region.
The economic data paints a mixed picture, with easing inflationary pressures and weaker retail sales contrasting with a recovering manufacturing sector and stable labor market dynamics.
BTC Technical Analysis
From January 13 to January 20, Bitcoin (BTC/USDT) experienced a sharp bullish reversal, surging from a low near $89,256 to a recent high of $109,588. The price initially consolidated within the $93,227–$99,000 range, indicating accumulation. A strong bullish candle on January 15 broke above the $99,400 resistance level, signaling renewed buying interest.
In the following days, Bitcoin maintained its position above $99,400, with consistent upward movement. This rally peaked on January 20, with a significant daily candle driving the price to $109,588. The strong bullish momentum established higher highs and higher lows, confirming the short-term uptrend.
Currently, Bitcoin is trading near $108,138, immediate support lies around $100,000, while resistance is near $110,000. If bullish momentum continues, Bitcoin could test higher levels. Otherwise, a pullback toward the $100,000 support zone may occur, offering an opportunity for further accumulation.
ETH Technical Analysis
Since mid-December, Ethereum (ETH) has been in a downtrend, hitting a low of $2,920 on January 13. It rebounded in the following days but faced strong resistance at $3,500. The failure to break above this level and form higher highs indicates the rally was a relief move within a broader bearish trend.
ETH's inability to sustain above $3,500 keeps it out of an uptrend, with $3,000 now serving as a critical support level. A drop below $3,000 could trigger deeper declines, while a recovery above $3,500 would signal renewed bullish momentum. Traders should watch these key levels closely for further direction.
SOL Technical Analysis
Solana experienced a significant drop on January 13, breaking through the support level at $181–$183, with its lowest point reaching $168.88. However, the following day, it showed resilience, managing to stay above the $181–$183 support area and breaking through the $203 level. The bullish momentum continued, pushing the price to the next resistance level at $250. Due to positive sentiment surrounding the Solana ecosystem, the price eventually reached a peak of $295.
Overall, Solana's trend appears bullish. If you followed last week's analysis and are already in profit, this could be a good opportunity for profit-taking. Solana remains bullish as long as it holds above the $230 level.
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