Bitcoin (BTC) hit a new all-time high in a week on July 11 as U.S. macroeconomic data delivered bullish expectations.
Bitcoin Reaches One-Week High, Quick Recovery
According to data from Cointelegraph Markets Pro and TradingView, the price of BTC briefly but quickly rose to $59,516 on Bitstamp.
This is according to the US Consumer Price Index (CPI) for June, which showed that inflation slowed more than expected.
Both the annual and monthly CPI came in 0.1% lower than expected, which was positive for both cryptocurrencies and US stock markets.
“The all-item index rose 3.0 percent for the 12 months ending in June, down from a 3.3 percent gain for the 12 months ending in May,” according to an accompanying press release from the U.S. Bureau of Labor Statistics.
“The index of all items excluding food and energy rose 3.3% over the past 12 months, the smallest 12-month increase for the index since April 2021.”
However, the initial gains were short-lived, with BTC/USD quickly losing the $1,000 levels it had initially risen to.
“Inflation is falling faster than expected. Bitcoin has responded with higher local highs,” popular trader Jelle summarized on X (formerly Twitter).
“It’s time for the dust to settle, but I can tell you that we’re a lot stronger now than we were at the beginning of the month. If we get back to $60,000, things will be a lot better.”
A key level on the radar of market participants was $60,000, which another trader, Wolff, had identified as a potential resistance level reversal target.
“The 60-61.6k range is where the strongest resistance is due to the horizontal and weekly 21EMA barriers,” he told X followers, referring to the 21-week exponential moving average at $60,900.
“Once we clear this level, the bulls will take control again.”
As reported by Cointelegraph, key boundaries within the Bitcoin bull market include the 200-day moving average and the short-term cost of holding baseline, the latter of which is still above the spot price at $64,088, according to data from on-chain analytics resource Look Into Bitcoin.
Short-term holders, a term used to describe speculative Bitcoin investors, held onto up to 2.8 million BTC at a loss last week when the price fell to a four-month low of $53,500.
BTC price sentiment is tied to Mt. Gox pressure
Meanwhile, the overall mood remained cautious, as the market anticipated that the distribution of coins owned by creditors of the closed exchange Mt. Gox would begin.
Related: Bitcoin Traders’ Profit Margins Repeat Bear Market in 2022 – New Study
Cryptocurrency commentator Zen has suggested that the BTC price could surge like a “nuclear bomb” as funds flow into exchanges, and that it would take two days for the market to rebalance.
This view isn’t limited to the trading world. Jamie Kautz, senior cryptocurrency analyst at financial services firm Real Vision, argues that it’s ultimately a process of overcoming mental anguish.
“While painful in the short term, distributing the Mt. Gox reserves and government sales will help remove the annoying oversupply and distribute coins to a wider range of holders, which will allow the network to grow and Bitcoin to be in better shape than before,” he wrote on X on July 10.
Coutts commented on the German government’s ongoing BTC sell-off, which Cointelegraph has been reporting on.
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.