Today’s post-CPI Bitcoin price action has concerned the bulls.
The US Bureau of Labor Statistics released the Consumer Price Index for June today on Thursday. The headline annual CPI inflation came out at 3%, better than the market’s consensus of 3.1%. Similarly, the core CPI inflation YoY increased by 3.3%, better than the expected 3.4%.
The US core inflation excluding shelter also came out negative for the second straight month.
Quite simply, the CPI for June should have been a bullish scenario for the cryptocurrency market, considering that it all but guarantees a rate cut in September.
And yet, the Bitcoin price fell by nearly 2% to trade below the $58,000 mark.
even if a favourable cpi print wont result in BTC closing above 1d ema then i have some bad news for you guys
— Honey (@honey_xbt) July 11, 2024
Bitcoin Falls Below Key Support
The Bitcoin price is trading at $57,300 at press time, below the key 200-day Exponential Moving Average, which is currently hovering at $58,170. BTC appeared poised to secure a daily close above this level, especially after the mild inflation print.
Immediately after the CPI release, the Bitcoin price traded as high as $59,300, above the 200-day Simple Moving Average, which is another key resistance. However, it appears extremely unlikely that the bulls will be able to flip this level today.
The correction in the cryptocurrency market comes after a broad-based decline in the equities market today. The S&P 500 and NASDAQ 100 are down 1% and 2% respectively, seeing their first red day since June 28th.
Experts believe that the S&P 500 is on the way to seeing its biggest daily decline since May 30th.
BREAKING: The S&P 500 falls toward 5,600, erasing post-CPI gains, on track for first red day since June 28th.Despite an all around positive June CPI report, the S&P 500 is on track for its biggest daily decline since May 30th.This comes as the daily RSI on the index hit 82… pic.twitter.com/1TsgQ0wS2t
— The Kobeissi Letter (@KobeissiLetter) July 11, 2024
The cryptocurrency market did not show any correlation to the US stock market over the past few months. It could be the worst-case scenario for the bulls if the correlation reappears now, considering that the stock market’s Relative Strength Index has entered oversold territories.
As such, experts such as Digital Nomad Woman believe that the bottom is not in for BTC. She highlights that the Bitcoin price always tests its 40-week average after any major correction since 2012. If this thesis proves to be true, BTC may correct to as low as $47k before resuming its bullish trajectory.
$BTC is going to 47K! Any bounce is a shorting opportunity.I backtested $BTC from 2012 which shows that after corrections, it has always bounced from the 40-week average. The 10-week and 40-week averages are commonly used to gauge the primary trend. We lost the 10-week… pic.twitter.com/gfOdGNEHED
— Digital Nomad Woman (@taqwaayub) July 11, 2024
Are Crypto Presales Better Investment Than Bitcoin At Present?
Smart money traders are stacking presale tokens in preparation for an extended Bitcoin crash. Crypto presales allow investors to purchase tokens at a fixed discounted price, irrespective of the broader market sentiment.
For instance, a new meme coin Pepe Unchained has raised over $3.2 million in its presale. The project is gaining significant attention, considering it has launched its own Layer-2 blockchain, which promises low trading costs, faster transactions and high staking rewards.
Indeed, the PEPU staking pool is currently offering a reward rate of over 500%. Additionally, the low trading fees are expected to boost retail investment.
Unsurprisingly, experts are bullish on this new meme coin, with some even hinting at potential 100x gains.
Similarly, experts are bullish on WienerAI, a new AI-powered meme coin. Crypto influencers believe that WAI could also offer 10x returns immediately after launch.
The new meme coin has raised over $7.3 million in its presale, a sign of its strong early demand. After all, the project is launching its own AI trading bot, which it is portraying as the ChatGPT of crypto.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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