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When markets enter periods of continuous rise for several months, new investors convince themselves that everything always goes up. However, they are unaware of the struggles experienced by seasoned investors in volatile markets over the years. Today was one of those days. BTC rapidly reversed within an hour.
Current State of Cryptocurrencies
The macroeconomic data from the United States was released, and BTC traded positively for an hour. However, it quickly reversed. One of the most significant developments this week was the inflation data, which came in below expectations and should have triggered a larger market rise.
Consistent with the data from the previous month, the falling inflation quickly spiked the price to $59,650. The fact that the annual and monthly CPI came in 0.1% below forecasts was a significant development that could pave the way for the Fed to make two rate cuts this year. The Bureau of Labor Statistics stated the following;
“The all items index increased 3.0 percent for the 12 months ending June, a smaller increase than the 3.3-percent increase for the 12 months ending May. The index for all items less food and energy rose 3.3 percent over the last 12 months, the smallest 12-month increase since April 2021.”
Crypto analyst Jelle stated;
“Inflation is falling faster than expected. Consequently, Bitcoin should reach local highs. It’s time to let the dust settle, but it’s much stronger than at the beginning of the month. If it can reclaim $60,000, everything will become much clearer.”
Cryptocurrency Commentary
Crypto trader Wolf considered the $60,000 level as a key point for an upward breakout and for the bulls to take control. The $60,000 to $61,600 range is a strong resistance area due to the weekly 21EMA barrier. Once this level is breached, the analyst expects a clear reversal.
Crypto commentator Zen still warns of a potential nuclear bomb in crypto due to MTGOX. Real Vision chief crypto analyst Jamie Coutts, as the final analyst, stated;
“Although painful in the short term, MTGOX returns and government sales help eliminate the annoying excess supply, distributing coins to a broader investor base. The network is growing, and this is better for BTC than in the past.”
