Bitcoin, Ethereum, Dogecoin Fall After CPI Data Comes Out: Analyst Foresees ‘Deeper Decline’ For King Crypto After This ‘Savage’ Move
By Benzinga
Major cryptocurrencies traded lower on Wednesday evening despite the release of positive inflation data in the Consumer Price Index (CPI) report for June.
| Cryptocurrency | Gains +/- | Price (Recorded 9:30 p.m. EDT) |
| Bitcoin (CRYPTO: BTC) | -0.53% | $30,380 |
| Ethereum (CRYPTO: ETH) | -0.52% | $1872 |
| Dogecoin (CRYPTO: DOGE) | -0.62% | $0.064 |
What Happened: The U.S. consumer prices recorded a 0.2% increase in June, which was lower than expectations for a 0.3% rise. Core inflation, which excludes volatile food and energy prices came in at 4.8% as against consensus estimates of 5%.
Top Gainer (24 Hour)
| Cryptocurrency | Gains +/- | Price (Recorded 9:30 p.m. EDT) |
| Conflux | +7.05% | $0.199 |
| Compound | +6.30% | $71.97 |
| BitDAO | +4.83% | $0.4736 |
At the time of writing, the global crypto market capitalization stood at $1.18 trillion, a decrease of 0.69% over the last day.
U.S. stocks experienced a boost on Wednesday following optimistic data which suggests that the Federal Reserve has the ability to control inflation without negatively impacting the US economy.
As a result, the S&P 500 saw a considerable increase of 0.74%, while the Nasdaq Composite saw a notable surge of 1.15%.
See More: Best Crypto Day Trading Strategies
Analyst Notes: “Correction and still in the chop. Patience is required in the crypto markets but you’d rather bet on the case that we’ll be going up (whether or not we’ll have a correction first) than expecting to go to $12,000,” wrote crypto trader Michael Van de Poppe.
Pseudonymous analyst Bluntz raised concerns about BTC’s recent performance. Bluntz observes a bearish lower-high pattern on the four-hour chart, indicating a potential downward correction for Bitcoin.
Bluntz believes that the current price action signals a loss of momentum for the crypto king, hinting at an ABC correction. This correction could drive Bitcoin’s value below the critical $28,000 mark.
“Savage four-hour forming here on BTC. I am updating my view a little bit and now expecting a deeper decline, a little bit further than just a simple $29,000 sweep, thinking more like (a move to the) $27,000 zone now.”
On-chain analytics firm, Santiment, tweeted that both sharks and whales are closely monitoring the Bitcoin price range of $30,000 to $31,000, just like the rest of the traders. Interestingly, they seem to be accumulating stablecoins such as USDP and DAI at a rapid pace. This accumulation suggests a higher probability of significant cryptocurrency purchases in the near future.
Photo Courtesy: Shutterstock.com
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