In a significant financial downturn, global markets have seen over $734 million in total liquidations, with Bitcoin (BTC) accounting for more than $152 million of this figure. This upheaval coincides with the release of the US December Producer Price Index (PPI), which fell short of expectations yet surpassed the previous month's year-on-year data. These developments, alongside persistent inflation, continue to impact the Federal Reserve's outlook on potential rate cuts in 2025.
The dollar stands to gain from proposed tariffs by the Trump administration, with various support and resistance levels playing a crucial role in its current market position. The R3 support for the dollar is noted at 1.2335, while R2 and R1 are at 1.2272 and 1.2224 respectively. The pivot point (PP) is identified at 1.2162. Resistance levels are set at 1.2250, 1.2299, and 1.2360, with corresponding support levels at 1.2099, 1.2069, and 1.2037.
Amid these financial shifts, Bitcoin's price has shown resilience, trading around $95,500 on Tuesday. This recovery comes as both the UK and US prepare to release December inflation reports on Wednesday. The outcomes of these reports are eagerly anticipated, as they are expected to provide further insight into economic conditions on both sides of the Atlantic.
The UK economy remains precarious, with anticipated rises in price pressure further complicating its economic landscape. Notably, the dollar's 10-day moving average (10DMA) is on a decline, and it has breached the critical 76.4% Fibonacci support level, indicating potential vulnerabilities in its performance.