After weeks of consolidation, Bitcoin (BTC) and the general cryptocurrency market has recorded a short-term rally in reaction to positive inflation data on December 13.

The rally has seen Bitcoin hit a new four-week high, with investors monitoring the asset’s price movement for a bottom that would likely usher in a new price breakout. Based on the flagship cryptocurrency’s latest price movement, Kitco News analyst Jim Wycoff on December 13 pointed out that Bitcoin has potentially begun a ‘bullish upside breakout.’ 

According to Wycoff, Bitcoin bulls have built a near-term technical advantage after a tussle of almost equal strengths. 

“Today’s price action has produced what looks to be the beginning of a bullish upside “breakout” from the choppy and sideways trading range on the daily bar chart to suggest a price uptrend will develop. Bulls have gained the near-term technical advantage,” Wycoff said. 

Bitcoin positive reaction to CPI data

Indeed, Bitcoin rallied after the latest Consumer Price Index (CPI) indicated that the Federal Reserve was making significant steps in winning the war to bring down inflation. The latest data showed that November inflation came in at 7.1% on a year-on-year basis compared to the 7.3% forecast, while monthly CPI was 0.1% less versus the 0.3% expected.

In this line, the crypto market has been monitoring the inflation data since it will determine the Fed’s next policy on…