Bitcoin (BTC) hit multi-day lows through August 10 as crypto traders braced for an impact with fresh US inflation data.
Trader: Market ‘could turn ugly’ if CPI continues to rise
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD fell to $22,668 on Bitstamp at the latest daily close – the lowest since August 5.
Bullish momentum had dissipated during the previous day and the mood among traders was strongly risk averse as markets awaited the latest consumer price index (CPI).
The data for July was expected at 8:30 a.m. ET on August 1[ads1]0, with expectations calling for US inflation to have already peaked.
“CPI prints have been quite important to BTC price action,” Blockware Lead Insights Analyst William Clemente wrote in part of a tweet about the event, adding that the CPI would form a “big day” for crypto.
An accompanying chart showed the impact of previous CPI readings on BTC/USD.
Trader and analyst Daan Crypto Trades, meanwhile, gave a CPI reading of 9.1 or higher as “bearish” for price action against current expectations of 8.7.
CPI guide for today in my opinion:
8.7-9.1 Neutral probably slightly bearish
Core KPI year/year
More thoughts below
— Daan Crypto Trades (@DaanCrypto) 10 August 2022
“The market has pumped on the idea that inflation has likely peaked in the past month,” he wrote in a dedicated thread.
“If it doesn’t get that confirmation today, I think it could get ugly in the near term as the top is likely to be moved forward another 1-2 months. Which probably means a delayed Fed pivot as well.”
Macro analyst Alex Krueger was more dismissive, meanwhile, calling CPI a “small number”, while recognizing its impact on risk asset trends.
BTC price still far from bullish pivot zone
The BTC price action thus remained stuck in a familiar area with classic support and resistance levels still in play.
Related: Bitcoin Dominance Hits 6-Month Low as Metrics Proclaim 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 target in the event of a breakdown.
$BTC Testing a critical support level here with the 4H 200EMA coming in below it at $22.7K.
If we get a complete breakdown, the logical target would be the low $21Ks.
Break and hold over $24.3K and we fly.
Those are my levels to watch at the moment. pic.twitter.com/UrDmxuebGf
— Daan Crypto Trades (@DaanCrypto) 9 August 2022
On-chain monitoring resource Whalemap, meanwhile, continued its analysis of whale buying and selling.
“$BTC is back in whale accumulation territory,” Whalemap Team in summary on the 9th of August.
“Prices where whales accumulate usually act as support or resistance for Bitcoin price action. The question is whether we bounce again or go deeper.”
The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trade involves risk, you should do your own research when making a decision.