Early July was not bullish for the Bitcoin and crypto market as previously expected, due to a number of events that shook the market. For example, the Spot Ethereum ETFs did not debut as expected on July 2, and the US and German governments reportedly sold large tranches of BTC. However, there could be a turn in the tide for Bitcoin and crypto in general as CPI data is expected to drop on July 11th.
CPI data could change the story for crypto
Crypto analyst CrypNuevo contacted X (formerly Twitter). part their thoughts on where they expect the Bitcoin price to go next. Referring to the upcoming CPI data, CrypNuevo explains that a rate cut could be imminent in the CPI data expected to be released on Thursday, July 11.
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With inflation numbers expected to be lower, this could indicate an immediate rate cut or at least a further rate cut by the Fed in the future. Such interest rate cuts would obviously be good for the Bitcoin price, just as they have been in the past.
“A rate cut or an upcoming announcement of a rate cut would be hugely received in the crypto market and I believe in that case we would see prices rise aggressively,” the analyst said. “I don’t deny that if we get a good CPI on Thursday, we will see that reversal for that day because the market tends to price in what’s coming from the FED,” CrypNuevo further explains.
Will Bitcoin’s Bearish Trend Continue?
For the analysis, the crypto analyst used the BTC 1-Day chart, which showed a rather peculiar fuse that the analysis expects to be filled. This fuse is the $53,400 fuse that occurred in early July before the market recovery, but the analyst doesn’t believe it’s over for the price. First, the analyst expects at least 50% of the fuse to be filled, something that already happened this weekend when the price fell to $54,000.
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On the topic of the fuse being 100% full, it could be bullish for the price as the crypto analyst expects that a drop to this level could see the price bounce from here. However, there is also the possibility that the price will fill this pit and then drop further down.
In such a case, the crypto analyst believes that there would be $51,700 available for the Bitcoin price. This means that this would be the next support level for bulls. A recovery from here would likely see the price barrel heading towards $60,000, but the analyst claims that $60,000 is now resistance for Bitcoin.
Featured image created with Dall.E, chart from Tradingview.com