The beginning of July has not been the ideal start for the Bitcoin and crypto market, contrary to earlier expectations. Various events have occurred that have shaken the market dynamics. One such event is the delay in the debut of Spot Ethereum ETFs on July 2nd. Additionally, reports have surfaced that the US and German governments are selling large tranches of BTC, causing further uncertainty in the market.
Despite the recent market turmoil, there could be a potential turning point for Bitcoin and the broader crypto market. On July 11, the CPI data is set to be released. Crypto analyst CrypNuevo shared their insights on where they anticipate the Bitcoin price heading next. The analyst highlighted that a possible rate cut in the CPI data could be in the cards. A lower inflation data could signal an imminent or further rate cut by the Fed, which historically has been positive for Bitcoin prices.
CrypNuevo based their analysis on the BTC 1-Day chart, focusing on a particular wick that caught their attention. The $53,400 wick from early July, which the analyst believes is significant. While the price briefly dropped to $54,000 over the weekend, the analyst predicts at least 50% of the wick to be filled. A complete fill of the wick could potentially trigger a bullish momentum for the price, but there is also a risk of further decline after the fill.
Support and Resistance Levels
In the event of the price falling further after filling the wick, CrypNuevo identifies $51,700 as a crucial support level for Bitcoin. If bulls can maintain this support, a possible recovery could propel the price towards $60,000. However, the analyst cautions that $60,000 now serves as a resistance level for Bitcoin, highlighting the challenges ahead for further price growth.
The Bitcoin and crypto market has faced significant challenges in the early days of July, with market events and uncertainty affecting prices. The upcoming CPI data release could provide clarity on the direction of Bitcoin prices, with potential rate cuts by the Fed being a positive driver. The market analysis and price predictions by CrypNuevo offer insights into possible scenarios for Bitcoin’s price movement, emphasizing key support and resistance levels to watch in the coming days. As investors navigate the volatile market conditions, staying informed and cautious is crucial to making informed decisions in the crypto space.
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