While the US CPI publication is scheduled for July 12, Bitcoin (BTC) and Ether (ETH) are stabilizing, raising investor expectations. The previous month, these two cryptos saw a significant increase in reaction to this economic indicator. Could the trend repeat itself this month?
Bitcoin (BTC) could break out of the current range!
In the short term, BTC price shows volatility, but there is no clear trend in the long term. In fact, the queen of cryptos has remained in a price range between $29,619 and $31,475 for the past three weeks.
This stagnant situation may continue today for bitcoin (BTC), until the US CPI is published tomorrow. In fact, this economic indicator could cause more volatility in the crypto market. This could therefore encourage the price of BTC to break out of the current range.
Analysts predicted a fall in the inflation rate to 3.1% for June. If this forecast is confirmed, it could have a positive impact on Bitcoin (BTC). The previous month, BTC recorded a 25% rise following a fall in the inflation rate in the United States.
On the other side, BTC could then target the major resistance level at $35,000. However, if the CPI exceeds the forecast, BTC could react negatively. On the other hand, the RSI variation on the H2 scale also suggests a decline.
In this case, it might be worth selling Bitcoin (BTC) at $30,695 with a support target at $28,335.
Outlook for Ether (ETH)
Due to the positive correlation between the two, ETH’s movements should closely follow those of Bitcoin (BTC). However, the short-term structure of ETH appears to be bearish. In fact, this Altcoin saw a strong downside reaction at the $1900 resistance.
This decline could deepen if Bitcoin (BTC) reacts negatively to inflation rates in the United States. If this scenario is confirmed, Ether (ETH) could go down to the support at $1750. In this case, the support level at $1900 would be an interesting level to sell.
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I am passionate about cryptocurrencies, a world I discovered barely 3 years ago. My only goal is to inform you about this incredible universe through my articles.
The views and opinions expressed in this article are the sole responsibility of the author, and should not be considered investment advice. Do your own research before making any investment decision.