The start of July was not as positive for the Bitcoin and cryptocurrency markets as previously expected due to a number of events that shook the market. For example, the Ethereum ETF did not launch on July 2nd as expected, and the US and German governments reportedly sold large amounts of Bitcoin. However, there may be a turning point in the tide for Bitcoin and cryptocurrencies in general as the Consumer Price Index data is expected to decline on July 11th.
CPI Data Could Change Cryptocurrency’s Path
Cryptocurrency analyst CrypNuevo has moved to X (formerly Twitter) to… Involved Their thoughts on where they expect Bitcoin price to go in the future. Referring to the upcoming CPI data, CrypNuevo explains that an interest rate cut could be imminent in the CPI data expected to be released on Thursday, July 11.
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With inflation data expected to be lower, this could signal an immediate interest rate cut or at least another rate cut by the Fed in the future. Naturally, such interest rate cuts would be beneficial for Bitcoin’s price as they have been in the past.
“A rate cut or an imminent rate cut announcement would be very welcome in the crypto market and I think we would see prices rally strongly in that case,” said the analyst. “I wouldn’t rule out that if we get a good CPI on Thursday, we would see that reversal on that day, because the market tends to price in what’s coming from the Fed,” explained Crepe Nuevo.
Will Bitcoin’s downtrend continue?
For his analysis, the crypto analyst used a 1-day BTC chart that showed a rather strange wick that analysts expect to be filled. This wick is the $53,400 wick that occurred in early July before the market recovered, but the analyst doesn’t think it’s over for the price. First, the analyst expects at least 50% of the wick to be filled, which is what happened over the weekend when the price dropped to $54,000.
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Regarding the 100% filled wick, this could be bullish for the price as the crypto analyst expects that a drop to this level could lead to a price rebound from here. However, there is also a possibility that the price could fill this wick and then drop further.
In such a case, the crypto analyst believes that Bitcoin price will hold at $51,700. This means that this will be the next support level that bulls will hold on to. A recovery from here is likely to take the price towards $60,000, but the analyst emphasizes that $60,000 is now resistance for Bitcoin.
Featured image created using Dall.E, chart from Tradingview.com
