Crypto Analysis: Bitcoin And Ethereum Prices Shrug Off CPI Data, Solana (SOL) Follows, PYTH Network Surges 12.8%

The crypto prices appear to be in a goldilocks despite unexpected inflation numbers revealed in the January CPI report. Shortly after the data release, the Bitcoin price fell to $48,300 and the Ethereum price retested the 2,585 level. Most altcoins also showed a very similar price action.

However, on Wednesday morning, BTC showed a significant recovery and changed hands at $51,100 at press time. ETH also depicted strength as it surged to fresh weekly highs above $2,725. PYTH Network emerged as the pick of the altcoins as it formed a new all-time high.

The CPI data for January 2024 showed that the YoY inflation remained 3.1% during the first month of the year. This was significantly higher than the market expectations of 2.9%. The core inflation also decreased less than expected, coming at 3.9% against the forecast of 3.7%.

The altcoin market capitalization (Total 3) remains in an uptrend after hitting $525 billion this week. This is due to the ongoing rally in the GameFi digital assets like BEAM, IMX, SUPER, RON etc. The bullish price action of Bitcoin and Ethereum has boosted investor confidence to take riskier bets.

SOL Price Flips Bullish With A 7% Surge

After a major correction in January, Solana's price is having a strong rebound. SOL price has been up 18.38% since the start of this month. On the weekly timeframe, the cryptocurrency has posted 7% gains in the first three days of this week.

The recent breakout above $107 has turned the price outlook bullish, putting the upside target of $126.36 on the cards. The $107 level must be held for this target to remain valid.

BTC Price Prediction & Technical Analysis

The BTC/USD chart shows the bearish divergences on the RSI and MFI indicators on multiple timeframes. These types of divergences often form near the market tops. However, the price appears to have a mind of its own after the latest surge above $51,000.

Bulls have nothing to worry about as long as the $49,500 level holds. However, a breakdown below this level might add to the bearish confluence. If the bullish momentum sustains, $52,000 seems to be a valid price target for the coming days.

PYTH Network Is Up 15% This Week

PYTH price has been constantly gaining momentum after breaking above its $0.55 resistance earlier this week. The price may soon retest the 1.618 Fib retracement level, which is $0.76, as mentioned in the following chart. The outlook will remain bullish as long as the $0.55 level holds.