Bitcoin Starts July On A Bearish Note, Will CPI Data Change The Narrative This Week?

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As a seasoned cryptocurrency analyst with several years of experience in the market, I believe that the upcoming CPI data on July 11 could significantly impact the Bitcoin and crypto market trend. Based on historical data, a rate cut or an imminent rate cut announcement from the Federal Reserve would be favorable for the crypto market.

The start of July hasn’t lived up to expectations for Bitcoin and the crypto market, with several unfavorable events causing instability. For instance, the anticipated debut of Spot Ethereum ETFs on July 2nd didn’t occur, and reports emerged of significant BTC sales by the US and German governments. However, a potential shift in fortunes may be on the horizon for Bitcoin and crypto as a whole, with the highly anticipated CPI data release scheduled for July 11.

CPI Data Could Move The Narrative For Crypto

Expert’s Take: Crypto analyst CrypNuevo expressed his insights (previously on Twitter) regarding Bitcoin’s potential future price direction. He highlighted the significance of the upcoming Consumer Price Index (CPI) data set for release on July 11, suggesting a possible rate cut could be indicated in this data.

As a researcher studying economic trends, I’ve noticed that the anticipated decrease in inflation may prompt the Federal Reserve to reduce interest rates imminently or at least consider additional reductions in the future. Historically, such rate cuts have positively impacted the price of Bitcoin.

The crypto market would likely respond positively if there’s a reduction in interest rates or if such an announcement is made, according to the analyst. In this scenario, cryptocurrency prices could surge significantly. However, if the Consumer Price Index (CPI) report on Thursday turns out to be stronger than expected, there’s a possibility that this upward trend might reverse for that day since markets often take into account future Federal Reserve actions.

Will The Bitcoin Bearish Trend Continue?

In the examination of the Bitcoin market, an analyst employed a 1-day chart for scrutiny, revealing an unusual wick at $53,400 from early July. Despite this downturn, the analyst remains optimistic that the price will not reach its end yet. Initially, they forecast at least half of the wick’s value to be regained, as demonstrated by the weekend’s price drop to $54,000.

Regarding the topic of a fully saturated wick on the chart, I, as an analyst, anticipate that reaching this point might lead to a bullish price action. This is because a potential drop to this level could trigger a rebound in the market. Nevertheless, there’s a chance that the price may fill this wick and then continue to decline.

As a researcher studying the cryptocurrency market, I believe that the Bitcoin price may find support at around $51,700. If this level holds, it could serve as a foundation for further bullish momentum. A potential recovery from here might propel the price towards the next significant resistance level of $60,000. However, my analysis indicates that $60,000 now acts as a barrier for Bitcoin’s upward trajectory.

Bitcoin Starts July On A Bearish Note, Will CPI Data Change The Narrative This Week?

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2024-07-08 17:46