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BTC Rebound UnderwayFollowing heavy losses over 2022, Bitcoin is starting the year in a much more encouraging manner. The leading crypto asset has recorded a roughly 30% rally over initial 2023 trading, taking price back up to levels last seen in September 2022. The main driver behind the move appears to be the shift in expectations regarding the pace and duration of US rate hike. With US inflation continuing to cool sharply, traders are anticipating a further slowing of Fed rate hikes from next month. Additionally, looking out across the year there is a growing view that should inflation continue to fall at the current pace, the Fed will likely halt its tightening operations ahead of current projections.This peak inflation narrative is key for crypto as ballooning inflation last year, and the subsequent wave of central bank tightening, was the chief architect of the demise of crypto in 2022. If the US continues to decline in coming months and the Fed does indeed further slow the pace of tightening, this should pave the way for a continued rebound in BTC and the broader crypto-world alike.Technical ViewsBTCThe rally in BTC this year has seen the market breaking above the bearish trend line and above two key resistance levels. With momentum studies now firmly bullish, the focus is on a continued push higher while price holds above the 20575 level with 22600 the next upside target for bulls. To the downside, any move below 20575 will see 18545 come into play as the next support to note.

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