After the 8.6% CPI pressure on June 10, sales increased in the global and crypto markets. All this suggests that inflation remains a persistent challenge. On the other hand, Bitcoin and altcoins are selling with record high inflation. However, investors are still waiting for BTC to consolidate.
Bitcoin breaks $30,000 support
Global financial markets have seen the Consumer Price Index (CPI) drop 8.6% year-over-year, the highest pressure since 1981. After coming in with an increase, it finds itself in a downward trend once again on June 10. The hotter-than-expected CPI pressure caused the $30,000 support in Bitcoin to collapse. BTC price dropped to $28,852 daily before bottom buyers managed to bid the price back above $29,000.
Dollar strength outweighs cryptocurrencies
Dollar index (DXY) and S&P, two criteria of high CPI pressure of financial markets Referring to the impact on the 500 (SPX), il Capo of Crypto said, “After the CPI results, DXY continues to rise and SPX continues in free fall.”
Market analyst Kevin Svenson also says that the Fed’s failure to control inflation could turn into volatile price movements for the next year.
There is a potential for a pullback below $28,000 for Bitcoin
If BTC price continues to drop, Twitter analyst nicknamed Altcoin Sherpa says trading below $28,000 is possible.
In their current analysis, Sherpa says:
Bitcoin: The 4-hour EMA looks good, but the long-term market structure remains bearish. I’m not really doing anything active. I’m just observing. If this available space disappears, the next levels are $20,000 or less.
BTC needs to retrace $30,000 to prevent further downside
CrediBULL Crypto recently discussed what to do to avoid a pullback to 28,000 support. The market analyst posted the chart below showing the “unfortunate” return from $30,000. The analyst suggested that this is “the moment we should see follow through.”
As we have quoted as Cryptokoin.com, Bitcoin is currently trading below 29 thousand dollars. It has lost that level after fluctuating above $30,000 for the past few days. Analyst had said on June 10:
On support, but has been tested four times at the moment. So it’s more likely to lead to $28,000. If we can get above $30,000, $28,000 can be avoided.
Currently, the total value of the cryptocurrency market is $1,192 trillion. BTC.D is at 48.09%. Bitcoin dominance last visited these levels in October.
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