Financial analysts interpret fluctuations in Bitcoin and altcoins within the framework of macro events. In their recent statements, two analysts drew attention to the FED’s statements and inflation data. Here are the details…
Justin Bennet: Big test coming for Bitcoin and altcoins
Financial analyst Justin Bennett says the inflation data to be released this week will be the biggest test ever for the crypto markets. The popular trader states in a new video that the Consumer Price Index (CPI) and Producer Price Index (PPI) data could shake up the macro environment. He says this could significantly impact crypto.
CPI and PPI will give us an idea of what kind of inflation we are looking at in the economy right now. Frankly, inflation is a big issue right now. Because it dictates how quickly the Fed and other central banks raise interest rates. The faster and more aggressively these central banks raise interest rates, the more pressure it puts on the economy and the financial markets as a whole. This includes crypto. Obviously, Bitcoin is following the S&P 500. Therefore, financial markets as a whole will watch both of these events next week.
BTC needs to close daily above these levels
The analyst says that Bitcoin (BTC) must see a daily close above the $23,000 level to return this area to support. At the time of writing, BTC is trading at $23,830. He states that after $23,000, the next resistance to watch will be $23,450. It draws attention to this level if next week’s inflation data turns out to be lower than the forecast or higher than the forecast, but the market rebounds.
“Very simple: If the market can close above $23,000, $23,000 would be support. If we close above $23,450, this level will be support.” says. According to Bennett, the key resistance above this will be around $24,200. He states that if we see a market that really recovers in the next month, $25,000 should be considered.
Coin Bureau also points to economic data
On the other hand, the host of the YouTube channel Coin Bureau says that the economic data coming out next month could have a big impact on the crypto markets. The analyst known as Guy tells his 2.09 million subscribers in a new video that he’s facing several wildcards that could cut the market’s latest rally short. The first is the Personal Consumption Expenditure (PCE) index, which is a measure of changes in the prices people in the United States pay for goods and services. The analyst uses the following statements:
Given that the PCE is the Fed’s favorite inflation figure, a high data here could cause markets to crash in anticipation of an aggressive increase.
This event was also pointed out for the Bitcoin and altcoin markets
Guy says the second wild card is the Gross Domestic Product (GDP) for Q2, which will be released later this month. The analyst says to “circle in red” the revised GDP figures for Q2, which will be released on August 26. Next up is the annual Jackson Hole Economics Symposium, where prominent figures from central banking and other industries discuss global economic issues. The analyst used the following statements:
The third wildcard to watch out for also happens at the end of August. Jackson Hole Symposium, which will take place August 25-27. For those who don’t know, the Jackson Hole Symposium is a central banking conference, and the overlap of this conference, and the two statistics I just mentioned, means we’re going to get a real-time reaction from Jerome.
PCE says the GDPR and the Jackson Hole Symposium will have a gradual impact on the crypto market. On the other hand, he says that these may affect the decisions of the US Fed Chairman Jerome Powell. He says the crypto market will be upset if the data comes in bad.
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