Despite the lingering bear trend of the Bitcoin market, Bitcoin (BTC) has yet continued to hit consistent lows on a daily as traders have readied themselves for the effect of the new United States inflation data.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
Market Could Be A Mess If CPI Keeps Rising
According to data from TradingView, the BTC/USD pair chart dropped to $22,668 on Bitstamp at the most recent daily close,which is the lowest recorded since Aug 5.
The bullish momentum of the BTC/USD pair had suddenly vanished the previous day as markets anticipated the latest Consumer Price Index (CPI) announcement and crypto traders were also left in an apprehensive mood
The major expectation of the data which will cover July, is that the US inflation had increased.
Blockware lead insights analyst William Clemente wrote about the event in a tweet, according to him “CPI prints have been pretty pitoval for BTC price action,” also adding that CPI would form a “big day” for crypto.
A chart showed the effect of the last CPI readout on the BTC/USD pair.
BTC/USD annotated chart showing CPI events. Source: William Clemente/ Twitter
However, trader and analyst Daan Crypto Trades provided CPI reading of 9.1 or above as “bearish” for price action against current expectations of 8.7. He backed this in a thread on Twitter. According to him “The market has been pumping on the idea of inflation having likely peaked the past month,”
Alex Krueger, a macro analyst, was more dismissive but he called CPI a “little number” while acknowledging its impact on risk asset trends.
BTC Price Still Far From Bullish Pivot Zone
BTC price action is still consolidating in a familiar range with the support and resistance levels still holding.
At the time of this report, BTC/USD pair is pegged at $23,192 after slacking with more than $1000 the previous day.
In a tweet, Daan Crypto Trades marked $24,300 as a delicate level to break and hold abd Bitcoin will fly, with $21,000 a potential target in the event of a breakdown.
Source: Dean Crypto Trades/Twitter
Meanwhile, On-chain monitoring resource Whalemap had continued its analysis of whale buy and sell levels. In a tweet summarised by the Whalemap team the previous day, they tweeted that “$BTC is back to the whale accumulation area,”