Bitcoin Confuses Investors With Consolidation Below $31K! Will CPI Data Bring Breakthrough Moment For BTC Price?

The post Bitcoin Confuses Investors With Consolidation Below $31K! Will CPI Data Bring Breakthrough Moment For BTC Price? appeared first on Coinpedia Fintech News

As Bitcoin continues to hold the spotlight, it has been causing a stir among investors due to its consolidation below $31,000. With the latest Consumer Price Index (CPI) data now released and falling below expectations, the question arises whether bullish CPI will create a pump moment in the BTC price. 

Bullish CPI Sparks Hope Among Bitcoin Investors 

Today’s release of the June Consumer Price Index (CPI) data by the Bureau of Labor Statistics has sparked a wave of positivity across the Bitcoin and broader cryptocurrency market. The recent statistics indicate an unexpected slowdown in inflation, fueling optimism for a favorable future outlook.

According to the Bureau of Labor Statistics (BLS), the U.S. inflation rate, as gauged by the Consumer Price Index (CPI), experienced a decline from 4.0% in May to 3.0% in June on a year-over-year basis, contrary to the anticipated dip to 3.1%. In terms of monthly changes, the CPI saw an increase of 0.2% in June, compared to 0.1% in May, albeit falling short of the projected 0.3% rise.

Bitcoin’s price, which has largely been oscillating between $30,000 and $31,000 in recent days, experienced a slight increase to $30,900 following the report’s release and eventually broke above $31K. However, it quickly relinquished this gain, settling just below $30,800.

The report released today indicates a continued downward trend in headline inflation, with June’s rate of 3% marking a decrease from a 2022 peak of 9.1%. Perhaps of greater significance to Federal Reserve policymakers is the shift in the core inflation rate, which dropped to 4.8% from 5.3% after persistently staying above 5% throughout the year.

Bitcoin Touches A Low Near $30.5K 

Bitcoin experienced a rebound from the 20-day Exponential Moving Average (EMA) at $30,600 to continue its uptrend. Following the CPI news, Bitcoin experienced a massive swing, with a low formed at $30.5K and a high at $31K. This suggests both bulls and bears are fighting heavily and a quick retest will determine strength.

Currently, Bitcoin is trading at $30,782, with a surge of 0.8% from yesterday’s rate. To avert a potential decline, bulls will need to hold the price above $30,500 and drive it toward the resistance zone, which lies between $31,000 and $31,500. This zone is expected to face significant selling pressure, but if the bulls manage to surpass this hurdle and $32.5K, the price could potentially surge toward the next key resistance at $40,000.

On the flip side, if the price dips below the 20-day EMA, it could prompt numerous short-term bulls to cash in their profits. This could lead the price to drop towards $29,710. A correction of this level would imply that the price might decline further and consolidate at $27,500.