Markets are waiting for the new US inflation data to be released today. The cryptocurrency market is preparing for the direction it will take with the new inflation data. However, many analysts warn investors that things could worsen for Bitcoin if inflation is high.
US CPI data released today
Data from TradingView showed that BTC/USD dropped to $22,668 in its latest daily close on Bitstamp. This is notable for being the lowest price level for Bitcoin since August 5. The bullish momentum disappeared the previous day. Now, markets are waiting for the latest Consumer Price Index (CPI) reading. Therefore, the mood among traders is definitely risky. The data covering the month of July will be announced today. Market expectations, on the other hand, show that US inflation has already peaked.
Many economists gave a CPI estimate of 8.7%. However, Michael J Kramer, founder of Mott Capital, announced that the Cleveland Fed estimated the CPI at 8.8%. It also revealed that the CPI has always been higher than the Cleveland Fed’s estimates since Fall 2021. Lark Davis expects market volatility before the CPI is released. Bitcoin’s daily RSI revealed that its uptrend is hanging by a thread. Both BTC and ETH are down about 5% in anticipation of today’s announcement. CPI data has the potential to cause the FED to develop more hawkish policies.
“It is possible for things to get ugly for Bitcoin”
“CPI pressures were quite significant for BTC price action,” wrote William Clemente, Blockware’s lead insight analyst, in a tweet about the event. He also stated that the CPI is a “big day” for crypto. Meanwhile, trader and analyst Daan Crypto Trades gave a CPI forecast of 9.1 or higher against current expectations of 8.7. He also added that if these highs break out, the Bitcoin price will fall. An attached chart shows the impact of previous CPI readings on BTC. Daan Crypto Trades also opened a special thread. “The market is pumping the idea of inflation, which probably peaked last month,” he wrote in the caption:
“If he doesn’t get this approval today, the summit will be moved forward 1-2 months. Therefore, I think things could get ugly for BTC in the short term. That probably means a delayed Fed pivot.”
“BTC still far from bullish zone”
Macro analyst Alex Krueger was less concerned about CPI data. The analyst described the CPI as a “small number,” while acknowledging its impact on risky assets like Bitcoin. BTC price action is stuck in a familiar range with the classic support and resistance levels still valid. BTC/USD dropped more than $1,000 the day before. He then circled $23,000. Daan Crypto Trades sees $24,300 as a resistance that must be broken for Bitcoin to “fly”. It also marks it as a very important level to hold. Accordingly, in the event of a breakdown, $21,000 is the potential target for the leading cryptocurrency.
Additionally, on-chain tracking platform Whalemap analyzed the trading levels of BTC whales. “BTC has returned to the whale hoarding area,” the Whalemap team said on Aug. However, he explained that the accumulation prices of whales are generally Bitcoin’s resistance and support levels. Then he asked the question, “Are we going to go higher or go to the bottom?”
“I expect a breakout at this level in Bitcoin price”
Crypto trading expert Michaël van de Poppe has issued a correction on the detailed analysis of Bitcoin’s previous actions. The analyst explained that he did this because of the CPI data, which is expected to be released on August 10. According to him, Bitcoin is correcting due to market fear and CPI expectations. However, he emphasizes that the trend continues and says he expects a test around $23-23.2K to hold. The analyst suggests that another test of resistance will result in a break towards $28,000. Meanwhile, another crypto market expert, Ali Martinez, also talked about the BTC price. According to him, Bitcoin must maintain the critical support level in the $22,720-$23,390 demand zone. Thus, the leading cryptocurrency will have the potential to reach $27,000 in the near future.
At the same time, Mike Novogratz, CEO of crypto investment firm Galaxy Digital, downplayed the previous Bitcoin bullish scenario. As we reported on Kriptokoin.com, Novogratz admitted that he is “satisfied with the $20,000 to $30,000 range” for Bitcoin by the end of the year. Interestingly, Novogratz had previously expressed his extremely high forecasts for BTC over the next five years. Accordingly, he claimed that Bitcoin will reach $ 500,000 in the coming years due to its adoption rate and features.
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