All eyes are on Bitcoin (BTC), the virtual gold standard of the cryptocurrency industry, as we approach the conclusion of another turbulent week chock full of numerous macro events. The US CPI data is due to be released on July 12, and traders are unsure if it will enhance the value of Bitcoin or lead it to drastically drop below $30,000.
Bitcoin investors could enjoy a worthwhile week.
The widely followed inflation indicator known as the CPI data has had a significant impact on the price movements of bitcoin. The US inflation rate dropped to 4% last month from 4.9% in April, a two-year low. It represents a significant decline from the US Shopper Value Index’s (CPI) peak of 9.1% one year earlier. Despite this, core expenses have continued to decline significantly, this time to 5.3% from 5.5%.
The yield decline brought on by these figures has experienced a sharp reversal as a result of the Federal Reserve’s ongoing hawkish posture. The CPI data from this week are not likely to have an impact on the Federal Reserve’s decisions in the next two weeks because another price increase is expected later this month.
However, they might provide us some insight into whether or not we should expect another price increase in September. With core expenses expected to decline by 5%, the June CPI is predicted to decline by an extra 3.1%.
A rise in the Shopper Value Index (CPI), according to consultants, might cause the cryptocurrency market to become more volatile. However, this does not automatically entail losses for cryptocurrency retailers.
However, day retailers can make use of CPI data to their advantage. They will buy or sell Bitcoin during market highs or lows, which are typically brought on by CPI data, and then sell it once the market has stabilized, making a profit.
What Can We Expect From BTC Value?
Bitcoin recently succeeded in rising again above $31,000, only to encounter significant promotional pressure that caused the price to drop to the 100-day exponential transferring average (EMA), which is currently near $30,000. BTC value is currently trading at $30,262, down more than 0.2% from yesterday’s price.
However, a bounce off the 100-day EMA signals a bullish mood, with traders taking advantage of modest declines to look for alternatives. This will raise the possibility of a burst past the $31,200 to $31,500 resistance range.
If this occurs, the value of Bitcoin may rise near the $40,000 threshold. Although the bears might attempt to stop this upward movement at $32,500, it is anticipated that the buying impulse will succeed.
On the other hand, it will indicate that the bears are in control if the price drops and breaks $29,600. Without a doubt, this might cause a dip to the $26,500 assist zone.