Home Bitcoin News Bitcoin Price Awaits CPI Data, Traders Eye Possible Breakout

Bitcoin Price Awaits CPI Data, Traders Eye Possible Breakout

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Bitcoin (BTC) price remained range-bound on July 12 as traders awaited the release of the US Consumer Price Index (CPI) data.

The CPI is a measure of inflation, and it is closely watched by investors as it can have a significant impact on asset prices.

Analysts are expecting the CPI to come in at 3.2%, which would be the lowest level since March 2021.

If the CPI comes in lower than expected, it could lead to a short-term rally in Bitcoin price.

On longer timeframes, Bitcoin is in the process of breaking out above its 20-period simple moving average (SMA).

This could be a sign that Bitcoin is entering a new bull market.

“Every time BTC made a monthly close ABOVE the SMA 20 line, it was the ultimate confirmation of a bull run,” said popular trader Moustache. “For the following 2 years it never again went below this line (except covid crash).”

However, traders warned that volatility could be high in the short term, as the market awaits the CPI data.

“There’s a good chance we see the usual ‘Darth Maul’ candle where both low timeframe highs & lows are taken out shortly after CPI,” said Daan Crypto Trades.

“From there on out the real direction for the day is often chosen which could then target the 31.1K or 30.2K level imo.”

The current price action is similar to what Bitcoin experienced in the lead-up to the March 2021 bull run.

At the time, Bitcoin was trading in a range between $40,000 and $50,000 before breaking out to the upside.

If history repeats itself, Bitcoin could be poised for a significant rally in the coming months.

What is the CPI?

The CPI is a measure of the average change in prices paid by urban consumers for a basket of consumer goods and services.

The CPI is calculated by the US Bureau of Labor Statistics and is released on a monthly basis.

The CPI is a key indicator of inflation, and it is used by the Federal Reserve to set monetary policy.

How does the CPI affect Bitcoin price?

The CPI can affect Bitcoin price in a number of ways.

If the CPI comes in higher than expected, it could lead to a sell-off in risk assets, including Bitcoin. This is because a higher CPI could be seen as a sign that inflation is out of control.

On the other hand, if the CPI comes in lower than expected, it could lead to a rally in risk assets, including Bitcoin. This is because a lower CPI could be seen as a sign that inflation is under control.

What is the outlook for Bitcoin price?

The outlook for Bitcoin price is positive in the long term.

Bitcoin is a scarce asset with a limited supply, and it is becoming increasingly accepted by mainstream institutions.

As adoption of Bitcoin continues to grow, it is likely that the price will continue to rise.

However, the short-term outlook for Bitcoin price is uncertain. The market is currently awaiting the release of the CPI data, and volatility could be high in the short term.

Overall, the outlook for Bitcoin price is positive, but the next few days will be critical in determining the direction of the market.

Here are some additional thoughts on the article:

  • The CPI data is likely to be the most important piece of economic news this week, and it could have a significant impact on Bitcoin price.
  • If CPI comes in lower than expected, it could be seen as a sign that inflation is finally starting to come under control. This could lead to a relief rally in risk assets, including Bitcoin.
  • On the other hand, if CPI comes in higher than expected, it could be seen as a sign that inflation is still a major problem. This could lead to a sell-off in risk assets, including Bitcoin.

Overall, the outlook for Bitcoin price is positive, but the next few days will be critical in determining the direction of the market.

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dan saada

Dan hold a master of finance from the ISEG (France) , Dan is also a Fan of cryptocurrencies and mining. Send a tip to: 0x4C6D67705aF449f0C0102D4C7C693ad4A64926e9

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