Originally published on: August 14, 2024
In a surprising turn of events, Bitcoin (BTC) experienced a sudden drop of 5% as it rejected the low Consumer Price Index (CPI) print, proving to be a classic “fakeout” move for investors. Just as the Wall Street opened on Aug. 14, BTC price soared to nearly $62,000 following the release of the latest CPI data, which fell below expectations.
However, the bullish momentum was short-lived as BTC/USD plummeted by more than 3% within an hour of hitting $61,809 on Bitstamp. Popular trader Daan Crypto Trades, who had previously cautioned about BTC’s erratic price behavior around US macro data, expressed relief as the CPI results were largely in line with estimates.
While the markets were anticipating a boost for risk assets and cryptocurrencies following the low CPI print, the reaction from Bitcoin proved otherwise. Traders like Roman predicted a further 10% decline in Bitcoin’s price, citing insufficient volume to sustain higher prices. As bids were cut through and a new resistance level began forming at $61,900, the possibility of BTC hitting $58,000 or even $55,000 before potential long entries became more apparent.
It is important to note that this article does not provide any investment advice or recommendations. Investors are advised to conduct their own research and analysis before making any trading decisions. To stay updated on market insights and opportunities, subscribe to the Markets Outlook newsletter for valuable information delivered every Monday. Remember to agree to our Terms of Services and Privacy Policy when subscribing.