Bitcoin price has been on a 4-day consecutive rally, jumping more than 29% since Friday when Silicon Valley Bank collapsed. Despite the tough year so far, BTC has been among the best-performing cryptocurrencies, jumping 57% in the year to date. At the time of writing, Bitcoin was trading 7% higher at $25,820.

BTC is Outperforming

Bitcoin price has been rallying in its recent trading sessions despite the collapse of the Silicon Valley Bank last week on Friday. The coin’s recent rally has been largely boosted by the current bullish momentum in the markets. Bitcoin’s coin market cap has increased by more than 7% in the past 24 hours, while the total volume of the coin traded slipped 8%.

Data by Coinmarketcap shows that the global crypto market cap has increased further by 5.19% to $1.13 trillion, while the total crypto market volume has decreased by 15.96% over the same period. Bitcoin’s dominance has increased by 0.83% over the last day to 44.24%.

The rally in the crypto market has been intricately linked to the recent US Consumer Price Index (CPI) data. The Bureau of Labor Statistics (BLS) reported a 0.4% increase in inflation in February from January, matching consensus estimates by analysts.

The CPI reading declined to 6% year on year, down from 6.4% in January, in line with market expectations. The core CPI, which excludes volatile food and energy prices, came in at 0.5% on a monthly basis, slightly higher than the estimated 0.4% forecast.

The yield on the 2-year Treasury note inched higher on Tuesday to 4.393%, after recording its biggest decline since 1987 on Monday. The benchmark 10-year Treasury yield rose to 3.628%.

Markets seem to be having difficulty in figuring out how the latest inflation reading will influence the Federal Reserve’s policy outlook. The recent CPI readings are fueling hopes for a smaller interest rate hike by the US Federal Reserve next week.

Bitcoin Price Analysis

The daily chart shows that the Bitcoin price has made substantial gains over the past few days despite facing several headwinds. BTC price has been hovering above the key resistance level of $25,265 for the past few hours. Notably, the digital asset hit an intraday high of $26,386.87 on the back of the recent inflation figures.

The BTC price has moved above the 25-week and 50-week moving averages. It has also moved above the 50-day and 200-day exponential moving averages (EMAs). Its Relative Strength Index (RSI) is hovering slightly below the overbought zone, pointing to a rebound in buying pressure.

Therefore, I expect the BTC price to continue moving higher in the short term as investors eye the Fed’s meeting next week. A breakout past the resistance level at $26,500 will have bulls eyeing the next target at $28,500.