Bitcoin (BTC) hit a multi-day low on August 10 as crypto traders eyed the impact of new US inflation data.
The market could turn ugly if the CPI continues to rise
Data from Cointelegraph Markets Pro and TradingView show that the BTC/USD pair fell to $22,668 on Bitstamp at the latest daily close – the lowest level since August 5.
The previous day’s bullish momentum waned, and traders were in bearish mood as markets awaited the latest Consumer Price Index (CPI) reading.
The data, which covers July, is due at 8:30 am Eastern on August 10, and is expected to show that US inflation has already peaked.
“The CPI releases have been devastating for BTC prices,” it said writing Blockware Senior Analyst William Clemente tweeted about the event, adding that the CPI release would be a “big day” for the crypto.
An accompanying chart showed the impact of previous CPI releases on the BTC/USD pair.
Annotated chart of the BTC/USD pair showing CPI events. Source: William Clemente/TwitterTrader and analyst Daan Crypto Trades said a CPI reading of 9.1 or higher would be “bearish” for cryptocurrency prices, against current expectations of 8.7.
ICC guide for today in my opinion:
ICC YoY:
8.7-9.1 Neutral probably slightly bearish
9.1 > BearishCore CPI YoY
5.9-6.1 Neutral
6.1 > BearishMore ideas below
— Daan Crypto Trades (@DaanCrypto) August 10, 2022
CPI guidance for today in my view: IPT year by year:
8.7-9.1 Neutral slightly bearish probably
9.1 > Bearish
Core CPI year on year
5.9-6.1 Neutral
6.1 > Bearish
More ideas below
— Daan Crypto Trades (@DaanCrypto) August 10, 2022
“The market has inflated the idea that inflation probably peaked last month,” he wrote in a dedicated thread.
“If he doesn’t get that confirmation today, I think it could get ugly in the short term, because the tipping point is probably going to be another month or two. That probably means a delayed nutritional pivot as well.”
Macro analyst Alex Krueger was more dismissive, qualifying acknowledging the “small number” of IPTs and their impact on trends in risky assets.
BTC price is still far from the bullish pivot zone
Thus BTC price remained stuck in a familiar range with classic support and resistance levels still in play.
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The BTC/USD pair is hovering around $23,000 at the time of writing after falling more than $1,000 the previous day.
Daan Crypto Trades reported that $24,300 was a critical level to break through and keep bitcoin from “flying,” with $21,000 as a potential target should it break out.
$BTC A critical support level is being tested here with the 4H 200EMA coming in below it at $22.7K.
If we got a full breakdown, the logical low target would be $21Ks.
Break and keep over $24.3K and we’ll fly.
Those are the levels I have to watch right now. pic.twitter.com/UrDmxuebGf
— Daan Crypto Trades (@DaanCrypto) August 9, 2022
BTC is testing a critical support level here with the 200 EMA below $22,700. If we have a full breakout, the logical target is $21,000. If we manage to break through and hold a level above $24,300, we will rise. These are the levels I currently have to watch. pic.twitter.com/UrDmxuebGf — Daan Crypto Trades (@DaanCrypto) August 9, 2022
On-chain monitoring platform Whalemap continued its analysis of buying and selling levels of whales.
“$BTC is back in the whale accumulation zone,” it said abstract the Whalemap team on August 9.
“Prices where whales congregate are usually support or resistance for bitcoin price. The question is whether we will have a new rebound or whether we will go further”.
The views and opinions expressed herein are solely those of the author and do not necessarily reflect those of Cointelegraph.com. All investment and trading involves risk, you should do your own research before making a decision.
