Bitcoin braces for US inflation data as CPI nerves halt BTC price gains

Bitcoin (BTC), which hit multi-day lows in Aug. 10, was a result of crypto traders bracing for the impact of new United States inflation data.

BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView

Trader: Market could get “ugly” if CPI continues to rise

Data from TradingView and Cointelegraph Markets Pro showed that BTC/USD dropped to $22,668 at Bitstamp’s most recent daily close — its lowest level since Aug. 5.

The day before, bullish momentum had waned and traders were cautiously awaiting the Consumer Price Index (CPI).

The data, which covered July, was due Aug. 10 at 8.30 Eastern Time. Expectations were that it would show that U.S. Inflation had already peaked.

“CPI prints were pretty pitoval to BTC price action,” Blockware lead insight analyst William Clemente said in a tweet about the event. He also added that CPI would be a “bigday” for crypto.

The accompanying chart shows the impact of CPI readings in the past on Bitcoin/USD.

BTC/USD annotated graph showing CPI events. Source: William Clemente/Twitter

Analyst and trader Daan Crypto Trades gave a CPI reading above 9.1 as “bearish”, indicating that price action is expected to be more than the current expectations of 8.7.

Today’s CPI Guide: CPI YoY: Bearish CPI YoY Bearish. More thoughts below
— Daan Crypto Trades (@DaanCrypto) August 10, 2022

He wrote that the market had been pumping on the notion of inflation having likely peaked in the past month, in a dedicated thread.

“If it fails to get confirmation today, I believe it could get ugly in the short term because the peak will likely move forward another 1-2 month. This likely means that the Fed pivot will be delayed.

Alex Krueger, macro analyst, was less dismissive. He called CPI “little numbers” but acknowledged its impact on asset trends.

BTC price is still far away from the bullish pivot zone

The BTC price action remained in the same range as before with support and resistance levels that were still in place.

Related: Bitcoin dominance falls to 6-month lows after metric declares new “alt season”

After dropping more than 1,000 the previous day, BTC/USD was at $23,000 as of the writing.

Daan Crypto Trades identified $24,300 as a critical level to break and hold Bitcoin in order for it to “fly,” with $21,000 being a possible target in the case of a collapse.

$BTC Testing is a critical support level with the 4H 200EMA below it at $22.7K. The logical target for a complete breakdown would be around $21Ks. We’ll fly if we can break and hold above $24.3K. These are my levels to keep an eye on for the moment.
— Daan Crypto Trades (@DaanCrypto) August 9, 2022

Whalemap, an on-chain monitoring resource Whalemap, continued its analysis regarding whale buy and sale levels.

The Whalemap team summarized Aug. 9 that “$BTC has returned to the whale accumulation zone”.

“Prices that whales accumulate often act as support and resistance to price action for Bitcoin. The question is: Will we see a rebound or will the price go higher?

Annotated chart of Bitcoin whale wallet inflows Source: Whalemap/ Twittercom. You should do your research before making any investment or trading decision.

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Eileen Wilson

Eileen Wilson –Technology and Energy My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.

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