A brief surge in Bitcoin’s price following a favorable CPI report was quickly reversed, highlighting ongoing market volatility amid fears of a Mt. Gox sell-off.
Bitcoin Sees Short-Lived Gains on CPI News
Bitcoin (BTC) spiked to a one-week high on July 11, fueled by positive U.S. macroeconomic data. Data from TradingView revealed that BTC prices briefly climbed to $59,516 on Bitstamp following the release of the U.S. Consumer Price Index (CPI) report, which showed inflation slowing more than expected.
Bitcoin’s Brief Rally
The CPI data indicated that inflation had decreased, leading to a positive reaction in both crypto and U.S. stock markets. The CPI for June came in 0.1% lower than forecasted year-on-year and month-on-month. A press release from the U.S. Bureau of Labor Statistics confirmed that “the all-items index rose 3.0 percent for the 12 months ending June, a smaller increase than the 3.3 percent increase for the 12 months ending May.”
Despite the promising data, Bitcoin’s initial gains were short-lived, with BTC/USD quickly losing the $1,000 it had gained. “Inflation coming down faster than expected. Local higher high for Bitcoin in response,” commented popular trader Jelle on Twitter. “Time to let the dust settle, but safe to say it’s much stronger than it was at the start of the month. Reclaim $60,000 and things will look much better.”
Key Resistance Levels
Market participants are closely watching the $60,000 level, identified by trader Wolf as a crucial resistance point. “The 60-61.6k range is where the strongest resistance lies, due to horizontal and weekly 21EMA barriers,” he tweeted, referring to the 21-week exponential moving average at $60,900. “If this level is cleared, the bulls will regain control.”
Other critical levels within the Bitcoin market include the 200-day moving average and the short-term holder cost basis, which remains high above the current spot price at $64,088, according to on-chain analytics resource Look Into Bitcoin. Short-term holders, often more speculative investors, held up to 2.8 million BTC at a loss when the price dropped to four-month lows of $53,500 last week.
Mt. Gox Sell-Off Concerns
The overall market sentiment remains cautious due to the anticipated distribution of coins to creditors of the now-defunct exchange Mt. Gox. This impending event continues to weigh heavily on Bitcoin’s price, with many investors wary of potential sell-offs that could impact market stability.
Summary Review: While the CPI data provided a brief boost to Bitcoin’s price, ongoing concerns about Mt. Gox and significant resistance levels continue to create a volatile market environment.
Disclaimer: Remember that nothing in this article and everything under the responsibility of Web30 News should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves inherent risks and potential investors should be aware that capital is at risk and returns are never guaranteed. It is imperative that you conduct thorough research and consult with a qualified financial advisor before making any investment decision.
