Bitcoin Price Falls Below $58k Despite Favourable CPI Print – Are Crypto Presales Better Investments?

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As a seasoned crypto investor with several years of experience under my belt, today’s price action in Bitcoin following the CPI release has left me feeling concerned. I had expected a bullish scenario for the cryptocurrency market given the favorable inflation print and the subsequent likelihood of a rate cut. However, the Bitcoin price fell by nearly 2% to trade below the key support level of $58,170, which is the 200-day Exponential Moving Average.

Today’s post-CPI Bitcoin price action has concerned the bulls. 

Today, Thursday, the Consumer Price Index (CPI) for June, which is overseen by the US Bureau of Labor Statistics, was made public. The annual headline inflation rate based on this index was reported at a 3% increase, lower than the anticipated 3.1% in market forecasts. Likewise, the year-over-year (YoY) growth for the core CPI inflation came in at 3.3%, which was less than the predicted 3.4%.

The US core inflation excluding shelter also came out negative for the second straight month. 

As an analyst, I would interpret the Consumer Price Index (CPI) data for June in a bullish manner for the cryptocurrency market. The likelihood of a rate cut in September becomes significantly higher with this CPI report.

And yet, the Bitcoin price fell by nearly 2% to trade below the $58,000 mark. 

 

If a favorable Consumer Price Index (CPI) reading fails to push Bitcoin’s price above its 1-day Exponential Moving Average (EMA), there might be unfortunate news for those expecting a significant price increase.

— Honey (@honey_xbt) July 11, 2024

 

Bitcoin Falls Below Key Support

At the moment of writing, the Bitcoin price is sitting at $57,300. However, it falls short of the significant 200-day Exponential Moving Average, which stands at around $58,170. It seemed that Bitcoin was preparing to finish the day with a price above this threshold, given the relatively low inflation figure released.

As a researcher examining the cryptocurrency market, I’ve noticed an intriguing development following the Consumer Price Index (CPI) release. The Bitcoin price reached a peak of $59,300 just after the announcement, surpassing the 200-day Simple Moving Average – a significant resistance level. Yet, based on current market trends and indicators, it seems highly improbable for bulls to successfully reverse this barrier today.

After a widespread drop in the stock market today, the cryptocurrency market has experienced a correction. The S&P 500 and NASDAQ 100 have seen decreases of 1% and 2% respectively, marking their first losing days since June 28th.

Experts believe that the S&P 500 is on the way to seeing its biggest daily decline since May 30th. 

 

As a crypto investor following the stock market closely, I’m dismayed to see the S&P 500 taking a downturn today, despite the positive CPI report in June. The index is currently headed for its largest single-day loss since late May, erasing the gains made post-CPI release. This shift occurred as the daily Relative Strength Index (RSI) of the S&P 500 reached an overbought level of 82.

— The Kobeissi Letter (@KobeissiLetter) July 11, 2024

 

As a researcher studying the relationship between cryptocurrencies and the US stock market, I’ve observed over the past few months that there has been no discernible correlation between the two markets. This is significant because if a connection were to reemerge now, it could pose a serious challenge for cryptocurrency bulls. The US stock market’s Relative Strength Index (RSI) has recently dipped into oversold territory, suggesting that it may be due for a potential rebound. However, the lack of correlation between the two markets means that the future performance of cryptocurrencies cannot be easily predicted based on the current state of the stock market.

Based on my analysis as an expert observer, I’ve noticed that Digital Nomad Woman and other industry experts hold the view that Bitcoin’s bottom hasn’t been reached yet. They argue that after every significant correction since 2012, Bitcoin has tested its 40-week moving average. If this trend holds true, we could see Bitcoin correcting to around $47k before picking up its bullish momentum once more.

 

Based on my analysis of Bitcoin’s price history since 2012, each correction has led to a rebound at the 40-week moving average. With Bitcoin currently hovering around this level, any potential bounce could present an opportunity for short-selling. The 10-week and 40-week averages are widely utilized indicators for assessing trends, and we’ve recently lost the 10-week average as a support level.

— Digital Nomad Woman (@taqwaayub) July 11, 2024

 

Are Crypto Presales Better Investment Than Bitcoin At Present?

Intelligent cryptocurrency investors are amassing presale tokens in anticipation of a prolonged drop in Bitcoin’s value. During presales, investors can buy tokens at a predetermined lower price regardless of the overall market mood.

A new meme coin called Pepe Unchained has brought in more than $3.2 million during its presale. The initiative is generating a lot of buzz due to the fact that it has established its own Layer-2 blockchain. This innovative feature aims to deliver affordable trading fees, quicker transactions, and lucrative staking rewards.

The PEPU staking pool presentsly yields a generous reward of more than 500%, making it an attractive proposition. Furthermore, affordable trading fees are projected to stimulate increased participation from individual investors.

It’s no surprise that experts are optimistic about this newly emerged meme coin, with some going as far as suggesting the possibility of it yielding a hundred-fold return.

As an analyst, I’m optimistic about WienerAI, the latest AI-driven meme coin in the crypto market. According to industry experts and influential crypto figures, this newcomer has the potential to generate significant gains, potentially even delivering 10x returns shortly after its launch.

The up-and-coming meme cryptocurrency has garnered approximately $7.3 million in presales, indicating robust early interest. Notably, this innovative venture is introducing an AI trading bot – described as the crypto equivalent of ChatGPT.

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2024-07-11 20:35