The beginning of July has not been bullish for the bitcoin and cryptocurrency market as expected due to a number of events that have shaken the market. For example, spot ethereum ETFs did not debut on July 2 as expected, and the US and German governments have been selling large amounts of btc. However, a turnaround could be coming for bitcoin and cryptocurrencies in general as CPI data is expected to be released on July 11.
CPI data could change the narrative on cryptocurrencies
Cryptocurrency analyst CrypNuevo took to x (formerly twitter) to x.com/CrypNuevo/status/1809982583381413974″ rel=”nofollow”>share Their thoughts on where they expect the bitcoin price to head next. Regarding 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 data expected to be lower, this could signal an immediate rate cut or at least a further rate cut by the Federal Reserve in the future. Naturally, such rate cuts would be good for the price of bitcoin, as they have been in the past.
“A rate cut or an imminent rate cut announcement would be very well received in the crypto market and I think we would see prices rising aggressively in that case,” the analyst said. “I don’t rule out that if we get a good CPI on Thursday, we will see that reversal for that day, because the market tends to discount what will come from the FED,” CrypNuevo explained.
Will bitcoin's downtrend continue?
For the analysis, the cryptocurrency analyst used the 1-day chart of btc which showed a rather peculiar wick that the analysis expects to be filled. This wick is the $53,400 wick that occurred in early July before the market rally, but the analyst does not believe it is over for the price. Firstly, the analyst expects at least 50% of the wick to be filled, something that already happened over the weekend when the price dropped to $54,000.
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As for the wick being 100% filled, it could be bullish for the price as the cryptocurrency analyst expects that a drop to this level could see the price bounce from here. However, there is also a possibility that the price fills this wick and then falls further.
In such a case, the cryptocurrency analyst believes that the bitcoin price would hold at $51,700. This means that this would be the next support level that the bulls should hold. A recovery from here would likely see the price surge towards $60,000, but the analyst argues that $60,000 is now a resistance for bitcoin.
Featured image created with Dall.E, chart from Tradingview.com