Bitcoin Price at $29,500 CPI as US Inflation Forecasts to Peak Again

Bitcoin Price at $29,500 CPI as US Inflation Forecasts to Peak Again

Bitcoin (BTC) is hovering near $29,500 today as the market is reading US Consumer Price Index (CPI) data.

Hourly chart of BTC/USD. Source: TradingView

Trader Warns About Bitcoin “Dolls” Despite CPI Volatility

Data from Cointelegraph Markets Pro and TradingView shows that BTC price stabilized ahead of the release of the CPI, itself a classic volatility trigger.
The CPI is one of the Federal Reserve’s key elements when setting interest rate policy. Last month’s June figure was the lowest in two years and expectations point to this and fall for July.
“3.3% is what we expected, but will we get it and how will the market react?” asks about x michael van de poppeFounder and CEO of trading firm Eight.
Van de Poppe points out that there is a possibility that the CPI will rise, which will This will put riskier assets under pressureSupport for loose Fed policy, including cryptocurrencies.
JPMorgan Chase is among those who have warned of a rebound in CPI values.
“The largest uncertainties are associated with two issues that were previously unlikely to affect the July data: recent increases in direct and indirect price flows to energy and food, and the relative stubbornness of services inflation.”economists tell Mohammed Al-Arian Part of the daily analysis.
“With today’s CPI, I think bitcoin and cryptocurrencies are going to give us some fun, but in the end I’m leaning a bit on the downside”famous trader claims Mark Cullen,

“BTC is back in range and unable to hold yesterday’s $29,500, if it fails to rally above immediately and hold, I will extend my short.”

Commented chart of BTC/USD. Source: Mark Cullen/X

still, The same market forecast supports a freeze on rate hikes at the next meeting of the Federal Open Market Committee. (FOMC) September’s,
According to CME Group’s Fedwatch tool, the probability of a lag is over 85% at the time of writing.

Probability chart of Fed target rates. Source: CME Group

Key Support for BTC Buyers Below $29,000

Meanwhile, the monitoring resource content indicator presented the liquidity conditions of Binance’s BTC/USD order book.

Related: Bitcoin Risks 15% Decline by October, Expects $100K in 2026

They reveal the possibility of a sudden drop due to lack of supply support just below the current spot price.
“Let’s not speculate on what the morning CPI and jobs reports will look like. By 8:30 we’ll know how these data will impact the soft landing narrative and the Fed’s September rate hike decision. What happens between now and then? What matters is where the liquidity accumulates and where it depletes.reads part of Comment,

“Prices can move quickly through dark, illiquid areas because there is little or no friction. Conversely, the more liquidity there is around the buy/sell walls, the more isolated those levels are. “

BTC/USD order book data for Binance. Source: Content Indicators/X

This article does not constitute investment advice or recommendations. Every investment and trade involves risk and readers should do their own research before making decisions.

Translation by Walter Rizzo





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