BTC price briefly hit $58,000 with the US market opening but couldn’t sustain it, now at $57,700. The prolonged weakness has normalized lower levels for altcoins, making the recovery process potentially painful. What do experts say about the current outlook for cryptocurrencies following the PPI data? Will the rise begin?
PPI and BTC
The annual PPI was announced at 2.6% despite the 2.3% expectation. This development, which we reported as breaking news, was negative for cryptocurrencies. Despite the June inflation data indicating a decline, the Fed’s cautious stance might be understandable for this reason. The US Bureau of Labor Statistics stated:
“On an unadjusted basis, the index increased by 2.6% for the 12 months ending in June, marking the largest increase since the 2.7% rise for the 12 months ending in March 2023.”
Popular crypto analyst Skew wrote the following in light of the latest data:
“So overall PPI, while not higher due to high prices and supply shortages, remains sticky on an annual basis. Rising energy, food, and service prices are not a good outlook. The initial reaction was DXY and Yields rising before falling, indicating to me that the market expects a harsh reality as demand continues to drop. NQ & ES are likely recovering here with hedges exiting. End-of-day performance will be important.”
However, the analyst also noted that the BTC order book on Binance is strong, indicating liquidity is positioned to prevent lower levels.
BTC Price Target
Crypto analyst Rekt Capital clearly stated that the daily close needs to be at $58,350 or above. Due to BTC’s prolonged low-level closes, investors are bold in selling near $60,000, fearing deeper dips.
“Bitcoin has the necessary recovery, and the price is currently challenging the Lower High resistance again. For Bitcoin to break the Lower High resistance and, more importantly, rise to $60,600 (blue), it needs to close above $58,350 (black) on a daily basis.”
