Bitcoin (BTC) is seeking confirmation above the psychological $60,000 level, renewing investor optimism on the back of positive CPI data. However, a trading expert warns that BTC may still face resistance in the lower time frame, which could trigger a short-term reversal.
An analyst is CrypNuevoon X, who has a good reputation for accurate trades and Bitcoin price predictions. According to him, BTC has a key wick in the hourly time frame, inside the resistance zone.
If the analysis works as expected, the wick could act as a magnet, pulling liquidity in the direction of growth. In this case, CryptoNew expects Bitcoin to trade at $62,000, creating a trap for bulls outside the zone.
However, the analyst points to potential resistance between $61,800 and $62,200, which coincides with the 50-day exponential moving average (1D 50EMA). As a key resistance, traders could consider shorting Bitcoin at these prices, which could trigger a reversal.
Failure to break this level could see BTC drop to $58,000 before bouncing back up. Notably, the trader says he will be looking for short opportunities in this setup.
CPI data release and Bitcoin price resistance
The US core consumer price index (CPI) was in line with market expectations, while the CPI was, positively, slightly lower. In particular, the CPI data shows annual inflation at 2.9%, which is better than the expected 3.0%. Finbold received the data on August 14, a few minutes after the official release.
Investors and analysts are currently interpreting the data with a bullish bias for the coming weeks. This is because the Federal Reserve has considered the CPI, along with the unemployment data, as leading indicators for a possible interest rate cut – which market participants believe will kick off a bullish rally.
Interestingly, the unemployment rate has exceeded expectations for a three-year high of 4.3%, while inflation appears to have slowed.
Therefore, the market can expect positive price action in the coming weeks despite the current potential short-term correction. However, it is important to remain cautious and avoid overexposure as anything can happen with cryptocurrencies.
Disclaimer: The content of this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
