Key Takeaways:
- Bitcoin price rebounds from the 20-day EMA but faces a crucial resistance zone between $31,000 and $31,500.
- Upcoming US inflation data could influence Bitcoin price; a drop in CPI would validate the Fed’s pause on interest rate hikes.
- Crypto analyst Michael Van De Poppe identifies $30,200 as a vital support level amidst market choppiness.
Bitcoin is currently trading at $30,563.38, with recent price action demonstrating a rebound from the 20-day exponential moving average (EMA) at $29,886 over the weekend. However, on July 10, the price retested this support level, which usually reduces its reliability.
The immediate hurdle for Bitcoin lies in the resistance zone between $31,000 and $31,500. Overcoming this barrier could trigger a potential rally towards the next significant resistance at $40,000. This zone is expected to attract a strong selling pressure that Bitcoin needs to withstand to prevent further decline.
Conversely, if Bitcoin fails to maintain its upward momentum and falls below the 20-day EMA, short-term bulls may be prompted to secure profits. This outcome could lead to a price drop toward the 50-day simple moving average (SMA) at $28,170.
Blockchain analytics firm Glassnode highlighted the narrow Bitcoin 14-day Price Range. Residing at a value of 4.6%, with only 1.9% (2167/113790) of trading hours recording a lower value, indicative of unusually sustained periods of stability for Bitcoin. This suggests a likelihood of a volatile move in either direction.
Crypto analyst Michael Van De Poppe identified a ‘leverage crunch’ that influenced Bitcoin’s recent price action. “The markets just continue chopping,” he said, noting that despite the turbulence, there have been no new lows. Van De Poppe points out the $30,200 level as a significant support, underscoring its stabilizing role in the face of market fluctuations.
Looking ahead, Bitcoin’s performance might also be influenced by the upcoming release of economic reports in the United States. Crypto investors are keenly awaiting Wednesday’s June Consumer Price Index (CPI) and Thursday’s Producer Price Index (PPI).
These indices, particularly the CPI, are of great interest as they provide insights into the inflation trends. Declines in the inflation data could align with the Federal Reserve’s decision to pause interest rate hikes. Thereby, impacting the Bitcoin and broader crypto markets.
A decrease in the CPI would justify the Fed’s stance and could positively influence risk markets like Bitcoin, which thrive when interest rates are low. Therefore, crypto investors are keeping a close eye on these indices, fully aware that the economic narrative could play a significant role in driving the next big move in Bitcoin prices.
Source
https://twitter.com/CryptoMichNL/status/1678668193731317764?s=20
