Bitcoin (BTC) showed a classic “fake” move at the opening of Wall Street on August 14 as bulls took a hit on U.S. macroeconomic data.
BTC Price Drops $3,000 Despite Positive CPI
According to data from Cointelegraph Markets Pro and TradingView, the price of BTC has surged to near $62,000 on the back of the latest Consumer Price Index (CPI) release.
Risk assets and cryptocurrencies were expected to rally after the underwhelming performance, but Bitcoin’s response was short-lived.
BTC/USD fell more than 3% in just over an hour after hitting $61,809 on Bitstamp.
In response, popular trader Daan Crypto Trades, who had previously warned that BTC prices could move erratically following the release of US macroeconomic indicators, felt relieved.
“CPI is mostly an estimate. It’s pretty good and I doubt it will have much of an impact on the markets in the end,” he wrote in a post on X.
“The market will most likely do what it wants anyway. At least there won’t be any crazy up or down surprises.”
According to the latest data from CME Group’s FedWatch tool, the market appears to be supportive of a small rate cut by the Federal Reserve at its next meeting in September.
“As headline inflation falls, a Fed rate cut is looming,” trading resource The Kobeissi Letter continued in part of its own X report.
“But if interest rates are cut, inflation in some categories will start to rise again.”
Bitcoin traders target $55,000 for long entry
Roman, a fellow trader who has been watching the potential market entry, said Bitcoin could easily fall another 10% from current levels.
Related: 45% of Bitcoin Supply Has Not Moved in 6 Months – Study
He argued that the market lacked adequate volume to sustain high prices.
He told his X followers, “I expect the price to hit $58,000, maybe $55,000 before I go long.”
“My plan has remained the same for the past week. There is a bearish price action (low volume + rising price) so I don’t see any strength here to continue the uptrend.”
A bid-asked decline was seen as new resistance was forming at $61,900.
This article does not contain any investment advice or recommendations. All investment and trading moves involve risk, and readers should conduct their own research when making decisions.