Bitcoin and crypto have been on a bit of a rollercoaster ride at the start of July. Things haven’t been as rosy as we hoped.
What’s Holding Bitcoin Back?
A few things have been weighing on Bitcoin’s spirits:
- Spot Ethereum ETFs Didn’t Launch: We were expecting those to show up on July 2nd, but they didn’t.
- Governments Selling Bitcoin: Both the US and Germany have been offloading some of their Bitcoin stash, which isn’t great news for the market.
A Possible Turnaround: CPI Data
But there’s a glimmer of hope on the horizon. The Consumer Price Index (CPI) data is expected to drop on July 11th, and this could be a game-changer for Bitcoin.
What CPI Data Could Mean for Bitcoin
Crypto analyst CrypNuevo thinks that if the CPI data shows inflation is cooling down, the Federal Reserve might cut interest rates. This would be good news for Bitcoin, as it’s been struggling with higher interest rates.
“If we see a rate cut or even a hint of one, crypto prices could jump,” CrypNuevo said. “The market often reacts to what the Fed is likely to do, so a good CPI report could turn things around.”
Bitcoin’s Chart: What’s Next?
CrypNuevo is also looking at Bitcoin’s chart and sees a few possibilities:
- Filling the Wick: Bitcoin dipped to $53,400 earlier this month, creating a “wick” on the chart. CrypNuevo thinks this wick could be filled, meaning Bitcoin could fall to that level again.
- A Bounce: If Bitcoin does fall to $53,400, CrypNuevo believes it could bounce back from there.
- Further Downward Pressure: There’s also a chance Bitcoin could fall even further, with $51,700 being the next support level.
Looking Ahead: Resistance and Potential Recovery
CrypNuevo thinks $60,000 is now a resistance level for Bitcoin. But if Bitcoin can overcome that, it could head back towards $60,000 and beyond.
So, the next few days are crucial for Bitcoin. The CPI data could be the key to determining whether the current bearish trend continues or if we see a rebound. Stay tuned!
