Bitcoin braces for US inflation data as CPI nerves halt BTC price gains

cointelegraph.com:

Bitcoin (BTC) hit multi-day lows into Aug. 10 as crypto traders braced for impact with fresh United States inflation data. 

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD dipping to $22,668 on Bitstamp at the most recent daily close — its lowest since Aug. 5.

Bullish momentum had evaporated during the day prior, and the mood among traders was firmly risk-off as markets awaited the latest Consumer Price Index (CPI) readout.

Covering July, the data was due at 8.30am Eastern time Aug. 10, with expectations demanding it show that U.S. inflation had already peaked.

“CPI prints have been pretty pitoval for BTC price action,” Blockware lead insights analyst William Clemente wrote in part of a tweet about the event, adding that CPI would form a “big day” for crypto.

An accompanying chart showed the impact of previous CPI readouts on BTC/USD.

Trader and analyst Daan Crypto Trades meanwhile gave a CPI reading of 9.1 or above as “bearish” for price action against current expectations of 8.7.

CPI Guide for today in my opinion:CPI YoY:<8.7 Bullish8.7-9.1 Neutral probably slightly bearish9.1> BearishCore CPI YoY<5.9 Bullish5.9-6.1 Neutral6.1> BearishMore thoughts below

“The market has been pumping on the idea of inflation having likely peaked the past month,” he wrote in a dedicated thread.

Macro analyst Alex Krueger was more dismissive, meanwhile, calling CPI a “little number” while acknowledging its impact on risk asset trends.

BTC price action thus stayed wedged in a familiar range with classic support and resistance levels still in play.

Related: Bitcoin dominance hits 6-month lows as metric proclaims new 'alt season'

BTC/USD circled $23,000 at the time of writing after dropping more than $1,000 the day prior.

Daan