CPI Data Could Move The Narrative For Bitcoin And Crypto

The beginning of July has not been bullish for the Bitcoin and crypto market as earlier expected due to a number of events that have shaken the

Crypto analyst CrypNuevo shared their analysis on X (formerly Twitter) regarding the upcoming CPI data and its potential impact on the Bitcoin price. According to the analysis, a rate cut might be on the horizon with the CPI data set to drop on Thursday, July 11.

CrypNuevo highlights the significance of this data, stating that a rate cut could be in the cards with the CPI data slated to drop on Thursday. The anticipation for this news is palpable, as it could herald a turning point in the crypto market narrative.

The analysis also points out that lower inflation figures could pave the way for an immediate rate cut or further reduction in the Fed's interest rates. Such a move would undoubtedly bode well for the Bitcoin price, considering the positive correlation observed in the past.

“A rate cut or an imminent rate cut announcement would be greatly received in the crypto market and I believe that we would see prices going up aggressively in that case,” the analyst noted.

“I don’t discard that if we get a good CPI on Thursday, we see that reversal for that day, because the market tends to price-in what's to come from the FED,” CrypNuevo further added.

The analysis is based on the BTC 1-Day chart, which reveals a peculiar wick that the analyst anticipates will be filled. This wick, formed in early July during the market recovery, is priced at $53,400. However, the analyst believes that the price decline is not yet complete.

The analysis anticipates that at least 50% of this wick will be covered, which partially occurred over the weekend as the price dropped to $54,000. If the price continues to fall, it could reach the lower range of the wick, potentially leading to a price rebound from this level.

Moreover, the analysis suggests that if the wick is 100% filled, it could be bullish for the price. However, there is also the possibility that the price fills this wick and then drops further.

In such a scenario, the analyst anticipates that the Bitcoin price will encounter support at $51,700. This indicates that the next support level for bulls is at this price point. A recovery from this level could propel the price toward the $60,000 mark, although the analysis maintains that this level now serves as resistance for Bitcoin.

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