The cryptocurrency market has been experiencing a turbulent period at the beginning of July, with several events contributing to the bearish sentiment among investors. The anticipated debut of Spot Ethereum ETFs did not materialize on July 2nd, adding to the disappointment. Additionally, reports of large sell-offs of BTC by the US and German governments have further dampened market outlook.
Despite the current market conditions, there is a glimmer of hope for Bitcoin and the wider crypto market. The upcoming release of the CPI data on July 11 could potentially signal a turnaround. Analyst CrypNuevo has speculated on the implications of the CPI data, suggesting that a rate cut might be on the horizon based on the expected lower inflation figures.
Historically, rate cuts have had a positive impact on the price of Bitcoin. CrypNuevo believes that an imminent rate cut announcement could lead to a significant uptick in prices. The market tends to price in future actions by the Fed, and a positive CPI result on Thursday could trigger a bullish reversal in the market.
CrypNuevo’s analysis is based on the BTC 1-Day chart, focusing on a specific wick at the $53,400 level that occurred earlier in July. The analyst predicts that at least 50% of this wick will be filled, with the price already dropping to $54,000 over the weekend. A potential scenario of filling the wick entirely could signal a bullish trend, with the price bouncing back from that level. However, there is also the possibility of the price dropping below this level, with $51,700 identified as a key support level.
If the price does recover from the $51,700 support level, CrypNuevo speculates that Bitcoin could rally towards the $60,000 mark. However, the analyst warns that $60,000 has now become a resistance level for Bitcoin, meaning that further price appreciation beyond this point may face significant obstacles.
The impact of the upcoming CPI data release on the price of Bitcoin is highly anticipated by market participants. While current market conditions are challenging, the potential for a rate cut and positive CPI results could provide the catalyst for a bullish reversal. Technical analysis suggests key support and resistance levels to watch in the coming days, with significant price movement expected based on these factors. Investors and traders will be closely monitoring the market response to the CPI data release on July 11.
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