Bitcoin braces for US inflation data as CPI nerves halt BTC price gains

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Bit­coin (BTC) hit mul­ti-day lows into Aug. 10 as cryp­to traders braced for impact with fresh Unit­ed States infla­tion data. 

BTC/USD 1‑hour can­dle chart (Bit­stamp). Source: TradingView

Trader: Market “could get ugly” if CPI keeps rising

Data from Coin­tele­graph Mar­kets Pro and Trad­ingView showed BTC/USD dip­ping to $22,668 on Bit­stamp at the most recent dai­ly close — its low­est since Aug. 5.

Bull­ish momen­tum had evap­o­rat­ed dur­ing the day pri­or, and the mood among traders was firm­ly risk-off as mar­kets await­ed the lat­est Con­sumer Price Index (CPI) readout.

Cov­er­ing July, the data was due at 8.30am East­ern time Aug. 10, with expec­ta­tions demand­ing it show that U.S. infla­tion had already peaked.

“CPI prints have been pret­ty pito­val for BTC price action,” Block­ware lead insights ana­lyst William Clemente wrote in part of a tweet about the event, adding that CPI would form a “big day” for crypto.

An accom­pa­ny­ing chart showed the impact of pre­vi­ous CPI read­outs on BTC/USD.

BTC/USD anno­tat­ed chart show­ing CPI events. Source: William Clemente/ Twitter

Trad­er and ana­lyst Daan Cryp­to Trades mean­while gave a CPI read­ing of 9.1 or above as “bear­ish” for price action against cur­rent expec­ta­tions of 8.7.

“The mar­ket has been pump­ing on the idea of infla­tion hav­ing like­ly peaked the past month,” he wrote in a ded­i­cat­ed thread. 

“If it doesn’t get that con­fir­ma­tion today I think it could get ugly short term as the peak will like­ly be moved for­ward anoth­er 1–2 months. Which like­ly means a delayed Fed piv­ot as well.”

Macro ana­lyst Alex Krueger was more dis­mis­sive, mean­while, call­ing CPI a “lit­tle num­ber” while acknowl­edg­ing its impact on risk asset trends.

BTC price still far from bullish pivot zone

BTC price action thus stayed wedged in a famil­iar range with clas­sic sup­port and resis­tance lev­els still in play. 

Relat­ed: Bit­coin dom­i­nance hits 6‑month lows as met­ric pro­claims new ‘alt season’

BTC/USD cir­cled $23,000 at the time of writ­ing after drop­ping more than $1,000 the day prior.

Daan Cryp­to Trades flagged $24,300 as a cru­cial lev­el to break and hold for Bit­coin to “fly,” with $21,000 a poten­tial tar­get in the event of a breakdown.

On-chain mon­i­tor­ing resource Whalemap mean­while con­tin­ued its analy­sis of whale buy and sell levels. 

“$BTC is back to the whale accu­mu­la­tion area,” the Whalemap team sum­ma­rized on Aug. 9. 

“Prices where whales accu­mu­late usu­al­ly act as sup­port or resis­tance for price action of Bit­coin. Ques­tion is, will we get a bounce again or go deeper.”

Bit­coin whale wal­let inflows anno­tat­ed chart. Source: Whalemap/ Twitter

The views and opin­ions expressed here are sole­ly those of the author and do not nec­es­sar­i­ly reflect the views of Cointelegraph.com. Every invest­ment and trad­ing move involves risk, you should con­duct your own research when mak­ing a decision. 



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