Bitcoin (BTC) has given up recent gains as cryptocurrency investors were left disappointed by the September 11 U.S. presidential debate.
Bitcoin Selling Pressure Increases as CPI Prints
According to data from Cointelegraph Markets Pro and TradingView, the price of BTC fell $1,000 in just one hour after the daily close, with BTC/USD hitting a local low of $56,099 on Bitstamp.
The upward momentum reversed as Donald Trump or Kamala Harris failed to provide new inspiration to those seeking a supportive cryptocurrency policy.
“The cryptocurrency market is also disappointed by the lack of commentary on cryptocurrency policy,” trading firm QCP Capital wrote in a response to subscribers to its Telegram channel.
QCP suggested that a “risk aversion move” in risk assets could easily emerge in the run-up to the US presidential election in November.
In the short term, the significance of the August consumer price index (CPI) due out later today has already faded.
“With this macro event winding down, attention now turns to the CPI release tonight,” QCP added.
“The market is expecting the CPI to print at 2.55% compared to 2.9% previously. We think there is a greater chance of an upward surprise. However, we expect the CPI to have minimal impact on the market as the focus has shifted to the unemployment data.”
As Cointelegraph reported, the recent unemployment figures caused BTC prices to fluctuate briefly, but nonetheless, there was no clear trend in either direction.
“Bitcoin is following its path as we expect a lot of momentum to come after CPI and PPI,” Michael van de Poppe, a cryptocurrency trader, analyst, and entrepreneur, inferred on X.
Van de Popp suggested that a low-period correction is standard procedure before a CPI event.
“There is a regular correction happening now with the CPI going up. If it holds at $55,000-$56,000, that would be good,” he concluded.
Moving averages reinforce BTC price resistance for weeks.
Then, popular trader Daan Crypto Trades noticed that the pattern was emerging on the 4-hour chart.
Related: Bitcoin Speculators Repeat Risk Reduction in 2021 as Exposure Drops by 21.6K BTC
He stated that he was against BTC/USD crossing both the 200-period simple moving average (SMA) and the exponential moving average (EMA).
On the chart uploaded to X on that date, these two trend lines were shown at $59,200 and $58,840 respectively.
“Whether $BTC is trading above or below these MAs is a good gauge of market strength/weakness,” he argued in part of the accompanying commentary.
“The Bulls will want to get it back for another bounce.”
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.