The uncertainty in the crypto market has caused Bitcoin to be stuck in a tight space. Analyst Sahana Vibhute assesses how critical US CPI data will affect the price of Bitcoin. Crypto analyst Shayan Chowdhury reads the future of BTC from metrics and technical drawing.
How will the US CPI data affect the Bitcoin price?
Crypto markets have been consolidating in a narrow range since last weekend. Because most cryptos are trading sideways. Meanwhile, Bitcoin price is trading around $30,500, where it has been stuck for several weeks. As the range in which the price is trading has not changed drastically, the probability of a bullish breakout is imminent. Although the price continues to trade within a small margin, traders seem to be extremely confident in the long-term prospects of the token. Because investors are constantly accumulating tokens. According to data from on-chain analytics platform Glassnode, investors have accumulated an average of 27.1k BTC/month.
The chart above shows that investors have serious confidence in the upcoming BTC rally. cryptocoin.comAs you follow, there are about 200 days left until the BTC halving. Therefore, traders started to prepare for the post-halving rally. In the past, this event triggered a massive spike in BTC price. In the process it rose 300% to more than 400% to generate a new ATH in 12 to 15 months. Therefore, now that the price is stuck in a tight range, it might be a good time to save up. On the other hand, traders also receive profits from their BTC holdings. Because the supply of profit is increasing while the supply of loss is rapidly depleting.
Currently, the majority of Bitcoin and altcoins are floating around without showing the possibility of massive price action. Also, the US CPI report will arrive on Wednesday, July 12, 2023. Meanwhile, another 25 basis points increase is expected from the FED. Therefore, until CPI rates come out, BTC price is likely to trade within the same margin without any major price action.
Is Bitcoin in trouble?
On-chain analytics firm Glassnode recently conducted an analysis showing that Bitcoin is at a pivotal point in the current market cycle. Glassnode’s work shows that Bitcoin is currently stabilizing around the $30,000 level, which is a crucial midpoint in the 2021-2023 cycle. The importance of this price point is underlined by its repeated testing in past cycles, underlining its historical significance.
The crypto community is chatting about the 2024 Bitcoin halving. However, there is another major market event on the horizon this year. The bankrupt Bitcoin exchange Mt. Gox’s trustee will reimburse the exchange’s creditors by October 2023. Industry observers agree that this event will force investors to stay away from Bitcoin investments.
However, the long-term bulls did not leave the field as spot ETF applications remained confident. Because it is possible that the SEC will approve this at any time. Framework Ventures CEO Vance Spencer said he expects the much-anticipated spot Bitcoin ETF to receive approval by the end of this year, if not sooner. He suggests that when this happens, similar ETF products could give investors exposure to other cryptocurrencies as well. Hence, it is possible for Bitcoin to experience a rapidly rising trend before the halving event.
What’s next for bitcoin price?
Bitcoin found support at $30.1k from the 100-day EMA. This triggered a short-term correction. However, the correction intensified as BTC price climbed above the $30.5k level. Following this, Bitcoin experienced an increase in buying pressure. It also triggered a sharp decline by breaking above $31,000. Currently, the bulls are attempting an increase again as the price climbs above $30,500. BTC is currently trading at $30,639, up 0.99% from yesterday’s rate.
To avoid a decline, the bulls need to pull the price towards the $31,000 to $31,500 resistance zone. It is possible that this region will face significant selling pressure. However, if the bulls manage to break through this hurdle and $32.5K, Bitcoin price is likely to rise towards the next key resistance of $40,000. On the other hand, if the price drops and dips below the 100-day EMA, it could cause many short-term bulls to lock in their profits. It is possible for the price to drop as low as $29,600 later. A correction below this level would signal a steep consolidation with $26,800.
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Waiting for Critical CPI Data for the continuation of the article! What Happens to Bitcoin Price?