Bitcoin Starts July On A Bearish Note, Will CPI Data Change The Narrative This Week?

The start of July has not been bullish for the Bitcoin and crypto market as earlier anticipated attributable to various occasions which have shaken the market. For instance, the Spot Ethereum ETFs didn’t debut on July 2nd as anticipated, and the US and German governments have been reportedly promoting giant tranches of BTC. Nonetheless, a flip within the tide could possibly be coming for Bitcoin and crypto at giant because the CPI knowledge is anticipated to drop on July 11.

CPI Knowledge May Transfer The Narrative For Crypto

Crypto analyst CrypNuevo took to X (previously Twitter) to share their ideas on the place they anticipate the Bitcoin worth to be headed subsequent. Pointing to the upcoming CPI knowledge, CrypNuevo explains {that a} fee reduce could possibly be imminent within the CPI knowledge that’s anticipated to be launched on Thursday, July 11.

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With the inflation knowledge anticipated to come back in decrease, this might level to an instantaneous fee reduce or a minimum of an extra fee reduce by the Fed going ahead. Naturally, such fee cuts could be good for the Bitcoin worth as they’ve been previously.

“A fee reduce or an imminent fee reduce announcement could be drastically obtained within the crypto market and I imagine that we might see costs going up aggressively in that case,” the analyst mentioned. “I don’t discard that if we get a very good CPI on Thursday, we see that reversal for that day, as a result of the market tends to price-in what’s to come back from the FED,” CrypNuevo explains additional additional.

Will The Bitcoin Bearish Pattern Proceed?

For the evaluation, the crypto analyst used the BTC 1-Day chart which confirmed a fairly peculiar wick that the evaluation expects to be crammed. This wick is the $53,400 wick that occurred in early July earlier than the market restoration, however the analyst doesn’t imagine that it’s over for the worth. Firstly, the analyst expects a minimum of 50% of the wick to be crammed, one thing that already occurred over the weekend when the worth fell to $54,000.

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On to the subject of the wick being 100% crammed, it could possibly be bullish for the worth because the crypto analyst expects that falling to this degree might see the worth bounce from right here. Nonetheless, there may be additionally the likelihood that the worth fills this wick after which falls additional down.

In such a case, the crypto analyst believes that $51,700 would maintain for the Bitcoin worth. Because of this this may be the subsequent assist degree for bulls to carry. A restoration from right here would seemingly see the worth barrel towards $60,000, however the analyst maintains that $60,000 is now resistance for Bitcoin.

Featured picture created with Dall.E, chart from Tradingview.com