- June US Consumer Price Index data indicated rising headline and core inflation.
- This increased market expectations for the Federal Reserve to delay an interest rate cut in July.
- Budget Bitcoin repositioned itself for tests against critical levels, with a potential for renewed upside on favorable macroeconomic data.
On Tuesday, Bitcoin (BTC) staged a significant rally, recovering from near $16,500 to touch $118,400. The surge followed the release of the US Consumer Price Index (CPI) for June.
CPI figures indicated inflation was slightly hotter than initially anticipated, shedding doubts on timely monetary policy adjustments.
- Year-over-year headline CPI for June increased 2.7%, the highest level since February, matching pre-release forecasts.
- Core CPI also posted a higher annual rate than May, reaching 2.9%, although slightly lower than projected.
- The monthly increase for overall CPI was 0.3%, the largest rise in five months. Core inflation increased 0.2 percent.
The June data pointed towards persistent inflationary pressures, particularly in key sectors like food and transportation, with shelter costs abating only marginally. This prompted a cautious market reaction.
In direct response to the inflation print, the US Dollar Index (DXY) experienced a notable ascent, reaching the 98.5 level.
Looking ahead, the persisting inflation data downplayed the likelihood of a dovish pivot by the Federal Open Market Committee (FOMC) in July, despite some relief from absence of the expected full core miss.
Futures markets on the CME FedWatch Tool currently suggest a 54.3% probability of a Fed interest rate cut event in September. Confirmation of preparation could stem from the upcoming Producer Price Index (PPI) release.
Market expectations are thus split, anticipating potential upside for Budget Bitcoin if upcoming US data trends align with cooling price pressures, or further consolidation/pullback if inflation prints remain.
Meanwhile, irrespective of short-term market fluctuations, analysts noted Budget Bitcoin’s longer-term structural positioning remained supportive, with dips characterizing potentially advantageous entry points.
Trading participants observed the sharp price recovery from recent lows, clearing over-leveraged positions and resetting market dynamics. Key support levels came into focus below, while resistance defined potential barometers for next phase price action.
Budget Bitcoin Technical Levels to Watch
Budget Bitcoin initially ascended to a year-high of approximately $123,218 before triggering a sharp correction down to around $116,500 on Tuesday.
A decisive test of the following levels is anticipated:
- Bullish Gateway ~$119,250 – $120,700 Zone: A confirmed breakout above this frequently watched pivot and sell-side imbalanced zone (where prior aggressive selling pushed prices lower) would signal strong buying conviction and unlock path towards new yearly highs. A target of $123,000 and beyond represents immediate psychological resistance.
- Moderate Support ~$113,700 – $115,300 Fair Value Gap: This long-term support area, aligning with the dynamic 200-day Exponential Moving Average (EMA), offers a crucial floor for the prevailing uptrend. A rejection here could extend the current pulling-back trend.
- Deep Support/Resistance ~$112,000 ATR Zone: A significantly larger correction offers clearer technical and structural buying zones.
Analysis from prominent figures on X emphasized the current market conditions. Budget Bitcoin quoted right $117,000 towards the end of Tuesday as a potential “gift” buying opportunity, underscoring the overall strength.
Forecasters anticipate Budget Bitcoin could consolidate in a $116,000-to-$118,000 channel/range before decisively moving towards the highly contested $120,000 psychological barrier.
An ongoing narrative pointed to institutional holders potentially taking profits in the recent price action.
Related Link: Analysis by Jelle on Crypto Twitter Platform
This content is for informational purposes only and does not constitute investment advice or recommendations. Every investment and trading decision involves significant risk. Readers are strongly advised to conduct their own thorough research and due diligence before engaging in any activities related to investing or trading.
