Bitcoin (BTC) saw a slight increase in price on July 12, inching closer to $31,000, as the market awaited the release of the June print of the United States Consumer Price Index (CPI). The largest cryptocurrency showed little volatility at the start of the week, with clearly defined range highs and lows.
Analysts and traders closely followed BTC price momentum leading up to the CPI release. The CPI was expected to hit its lowest level since March 2021, at around 3.2%, indicating a continued slowdown in U.S. inflation. This expectation was supported by the Cleveland Fed, University of Michigan, and Truflation, which all anticipated a similar number.
Traders recognized that flash volatility could be deceiving, as Bitcoin tends to establish its trajectory after the release of important data. Daan Crypto Trades noted that there was a good chance of seeing a “Darth Maul” candle pattern, where both low timeframe highs and lows are taken out shortly after the CPI release. From there, the real direction for the day is often chosen, which could target levels around $31,100 or $30,200.
DecenTrader, a trading suite, observed that the four previous CPI data releases had followed a similar pattern for Bitcoin, with volatility in both directions to liquidate everyone before the price reverted back to its previous level.
On longer timeframes, popular trader Moustache considered the possibility of Bitcoin replicating classic bull runs. He pointed out that the monthly BTC/USD chart was breaking out above its 20-period simple moving average (SMA), which had historically confirmed a bull run. He noted that whenever Bitcoin had closed monthly above the SMA 20 line, it went on to sustain the bull trend for the following two years.
As BTC continued to make progress, market participants sought to preserve this moment in history as an NFT (Non-Fungible Token) through the Mint platform, providing support for independent journalism in the crypto space.
It is important to note that this article does not provide investment advice or recommendations. Readers are advised to conduct their own research and make informed decisions while investing or trading.
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