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Today, the eagerly awaited Producer Price Index (PPI) data was released in the US ahead of tomorrow’s Consumer Price Index (CPI) data. The PPI accelerated on an annual basis, further increasing the likelihood of a Fed interest rate hike in September. Prior to the data release, the Fed WatchTool data indicated a 62.2% probability of a September rate hike, which rose to 70% after the release.
At this point, <a href="https://xpertsstudio.com/bitcoin-drops-below-77000-on-hot-ppi/” title=”Bitcoin: Drops Below $77,000 on Hot PPI”>Bitcoin faced selling pressure after the US PPI data came in higher than expected, and it fell to the $76,000 level.
What’s the Latest Situation with Bitcoin?
In his latest analysis published today, Garrett Jin, a major Chinese cryptocurrency whale, stated that Bitcoin’s current consolidation phase is far from over.
According to Jin, the fact that Bitcoin rose to the $82,300 level but couldn’t maintain it indicates that the market hasn’t yet entered a strong uptrend.
Jin points out that one of the most important levels for Bitcoin is $82,500. However, he notes that simply breaking above $82,500 is not enough for the upward trend to continue.
For an upward move, it needs to maintain its position above this level and see stronger buying from the spot market. In such a scenario, Jin stated that $BTC’s next target would be the $83,000-$86,000 range, noting that this area would be watched as a significant resistance and selling zone. However, Jin cautioned that the initial phase of the rise might be slow and difficult due to the significant selling pressure that has previously formed in this region.
Downside Risks Still Exist!
Jin stated that the first significant support zone on the downside is $76,000–$77,000. In this context, if there is no upward breakout, Jin suggests $BTC could fall to the $76,000–$77,000 region. If this level is also broken by significant selling pressure Bitcoin could move first to $74,000–$75,000, and then to the more important demand zone of $72,000–$72,500
Finally, Jin added that he believes there is approximately a 70% chance that $60,000 is the bottom of the current cycle.
In addition, analyst Killa also shared his expectations for Bitcoin. In his analysis shared from account X, the analyst stated that even if a correction occurs, Bitcoin is likely to only fall below $70,000 temporarily.
The analyst noted that $BTC has risen 27% after trading sideways near its lows for about two months, but the market hasn’t yet fully gained confidence that a bull market has begun. At this point, the analyst predicts that the current price movement resembles Bitcoin’s bottom-forming process in 2022, and that any potential pullback may be relatively limited.
The analyst noted that a similar gap existed during the rally in late 2022, and that buying quickly reversed once it was filled. However, he added that the gap around $70,000 in the current market doesn’t need to be completely filled.
The analyst said that if a similar pattern emerges this time, $BTC could briefly test the $70,000 region, but a pullback to that level is not necessary.
Finally, the analyst predicts that if the $73,000-$75,000 region holds, Bitcoin could rise again towards the $85,000 level. He also notes that even in the worst-case scenario, a capitulation above $69,000 is still possible.
*This is not investment advice.
Source: cryptonews.net