Bitcoin on the Rise: An Inflation-Fueled Surge
On August 18, Bitcoin (BTC) found itself climbing the charts, breaking past the $23,500 mark as Europe reported an inflation rate that reached a staggering 9.8% for July. You know it’s serious when the numbers sound like they belong on a scary horror movie poster.
Support and Resistance: The Bull and Bear Dance
Despite this upward movement, Bitcoin has faced its fair share of challenges. Data shows that BTC/USD managed to maintain $23,000 as a support level overnight. But with the threat of a deeper decline hanging in the air, bears might just take the stage. Analyst Daan Crypto Trades pointed out, “BTC broke down from this huge rising channel that everyone’s been watching,” indicating the current bearish sentiments. What does that mean? Those resistant zones between $23,800 and $24,000 are the new focus, with breaking back into that zone being a potential game-changer.
The Whale Watching Game
On-chain analytics from Whalemap suggested that notable whale buying activity around $22,800 could act as a crucial safety net in case of a market dip. In layman’s terms, that’s like saying the big players in the crypto game have decided to stack their coins at a particular price point, and if we drop below that, it’s time to buckle up for a bumpy ride. Whalemap even humorously remarked that the $22,800 mark should be our watchword during any downturn.
Record-Setting Inflation: The Tale of the Eurozone
Meanwhile, in economic news that sounds like a plot twist, the European Union recorded its highest inflation yet. Up from 9.6% the previous month, July’s figures officially make the Eurozone look more like a financial thriller than a comedy. Recent statistics revealed nations experiencing extreme inflation rates, with Estonia at a gripping 23.2%, Latvia at 21.3%, and Lithuania at 20.9%. Meanwhile, the more sensible nations like France and Malta clocked in at a more modest 6.8%.
The ECB’s Crystal Ball: Uncertain Times Ahead
In an attempt to peer into the future, Isabel Schnabel, a member of the Executive Board of the European Central Bank, cautioned that inflation might creep up even more, saying, “Any projection is currently subject to high uncertainty.” In other words, she’s not pulling any punches about the volatility of the situation. Meanwhile, across the pond, there’s hope in the U.S. that inflation may be cooling, with the next update set to be unveiled on September 13.
