Bitcoin Hits Multi-Day Lows
On August 10, Bitcoin (BTC) found itself in a tight spot, dropping to $22,668 on Bitstamp. The recent dip marked the lowest close since August 5, unfolding amidst anticipation of fresh U.S. inflation data.
Traders Brace for CPI Data
Traders were cautiously sifting through the prelude to the Consumer Price Index (CPI) report, which was released at 8:30 am Eastern Time. The market sentiment was decidedly risk-off, with many expecting that inflation may have already hit its peak.
The Great CPI Debate
Analysts weighed in on the forthcoming CPI numbers, with William Clemente from Blockware noting the critical relationship between CPI prints and BTC price action. He forewarned that a disappointing report could cast a pall over the crypto market:
“CPI prints have been pretty pivotal for BTC price action.”
Meanwhile, fellow analyst Daan Crypto Trades suggested that any CPI reading above 9.1% would signal bearish trends against prevailing expectations of 8.7%.
Price Pressure and Key Levels
As
BTC price lingered around $23,000, the market remained concerned. The critical levels to watch included:
- Break and hold above $24,300 for bullish momentum.
- Potential drop toward $21,000 if there’s a breakdown.
Whale Watching and Market Moves
Adding more intrigue, on-chain resources like Whalemap hinted at a recent return to whale accumulation zones. The team remarked, “BTC is back to the whale accumulation area,” raising questions about whether we would see a bounce or a deeper descent.
The Road Ahead for Bitcoin
Amidst fluctuating prices and prevailing uncertainty surrounding economic indicators, traders were bracing themselves for a wild ride. The upcoming CPI data could very well serve as a make-or-break moment for Bitcoin’s trajectory. So, traders, fasten your seatbelts—this could get bumpy!
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