The beginning of July was not as bullish for the Bitcoin and crypto market as expected due to a series of events that have shaken investor confidence. The Spot Ethereum ETFs did not launch on July 2nd as anticipated, and reports have surfaced about large amounts of BTC being sold off by the US and German governments. These events have contributed to a sense of uncertainty in the market.
Despite the recent downturn, there is optimism that there could be a turnaround for Bitcoin and crypto at large with the release of the Consumer Price Index (CPI) data on July 11. Crypto analyst CrypNuevo has shared their insights on where they believe the Bitcoin price is heading next. Pointing to the upcoming CPI data, CrypNuevo suggests that a rate cut could be on the horizon, based on the expected lower inflation data.
If a rate cut or an announcement of an imminent rate cut were to occur, it would likely be well-received in the crypto market. Historically, rate cuts have proven to be positive for the Bitcoin price. CrypNuevo believes that such news could lead to a significant uptrend in prices. The market tends to factor in future actions by the Federal Reserve, so a positive CPI result could lead to a temporary reversal in market sentiment.
In analyzing the BTC 1-Day chart, CrypNuevo identified a key wick at $53,400 that they predict will be filled. While the price briefly dropped to $54,000 over the weekend, the analyst expects at least 50% of the wick to be filled. If the price were to reach the 100% mark of the wick, it could signal a bullish trend, with potential for a bounce back.
Should the price fill the wick and then continue to drop, CrypNuevo believes that $51,700 would serve as a crucial support level for Bitcoin. A successful recovery from this point could propel the price towards the $60,000 mark. However, the analyst cautions that $60,000 has now become a resistance level for Bitcoin, meaning that further upward movement may face challenges.
While recent events have caused some turbulence in the Bitcoin and crypto market, there is hope for a positive shift with the upcoming release of CPI data. A potential rate cut could boost investor confidence and lead to a resurgence in prices. Technical analysis points towards key support and resistance levels that traders should monitor closely in the coming days. As always, it is important for investors to stay informed and adapt to market conditions accordingly.
