Bitcoin Braces for US Inflation Data as CPI Nerves Halt BTC Price Gains

Bitcoin (BTC) hit multi-day lows on Aug. 10 as crypto traders braced for impact with new inflation data from the United States.

BTC/USD 1 hour candle chart (Bitstamp). Source: Trading View

Trader: Market ‘could get ugly’ if CPI continues to rise

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD plunging to $22,668 on Bitstamp in the most recent daily close – its lowest since Aug. 5.

The bullish momentum had evaporated over the previous day, and traders’ mood was firmly off risk as markets awaited the latest Consumer Price Index (CPI) reading.

Covering July, the data was due at 8:30 a.m. Eastern Time on Aug. 10, with expectations demanding that it show U.S. inflation had already peaked.

“CPI impressions have been pretty crucial for BTC price action,” William Clemente, chief analyst at Blockware. wrote in part of a tweet about the event, adding that CPI would be a “big day” for crypto.

An attached chart showed the impact of previous CPI readings on BTC/USD.

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

Trader and analyst Daan Crypto Trades, meanwhile, gave a CPI of 9.1 or higher as “bearish” for price action compared to current expectations of 8.7.

“The market has been pumping 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 peak will probably be brought forward a month or two. Which probably means a delayed pivot from the Fed as well. »

Macro analyst Alex Krüger was more dismissive, meanwhile, call CPI a “small number” while acknowledging its impact on risk asset trends.

BTC price is still far from the bullish pivot zone

BTC price action therefore remained stuck in a familiar range with classic support and resistance levels still in play.

Related: Bitcoin Dominance Hits 6-Month Lows as Metric Proclaims New ‘Alt Season’

BTC/USD circled $23,000 at the time of writing after losing more than $1,000 the previous day.

Daan Crypto Trades flagged $24,300 as a crucial level to break and hold for Bitcoin to “fly,” with $21,000 as a potential breakout target.

On-chain monitoring resource Whalemap, meanwhile, continued its analysis of whale buying and selling levels.

“BTC is back in the whale accumulation zone”, the Whalemap team abstract August 9.

“Prices where whales accumulate typically act as support or resistance for Bitcoin’s price action. The question is, are we going to bounce back or go deeper.

Annotated chart of Bitcoin Whale wallet entries. Source: Whalemap/Twitter

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