Bitcoin (BTC) and the general cryptocurrency market started August on a high note, seeing capital inflows to maintain the $1 trillion valuation. The market performance came as investors anticipate the latest CPI figures which will partly dictate the price movement of cryptocurrencies and stocks.
However, Bitcoin has corrected slightly and the focus is on the next price action for the flagship cryptocurrency, which traded at $23,060 at press time, down 1% over the past few months. last 24 hours.
In this line, crypto trading expert Ali Martinez in a Tweeter published on August 10, said that for the asset to rally, it needs to maintain buying pressure which can propel it to around $23,500, while the market should also focus on a support level of 23,890 $.
“The TD sequential indicator presents a buy signal at a key support area. A spike in buying pressure could help $BTC reach $23,500 or even $24,100. Still, watch out for the $23,890 support level as a four-hour candlestick close below can trigger a strong correction,” Martinez said.
What other analysts say
Elsewhere, another crypto trading expert, Michael van de Poppe, attributed the latest correction to uncertainty over inflation figures. Notably, following the record inflation rate in July and the ensuing interest rate hike by the Federal Reserve, Bitcoin’s performance was considered impressive as the asset managed to sustain gains. greater than $20,000.
In the middle of the last correction, Poppe, in a Tweeter released on August 10, also called for the market to look for a target of $23,800, but the flagship cryptocurrency needs to break the level between $23,200 and $23,300.
“Bitcoin has corrected further, anticipating and leading the CPI event (or at least investors are basing their decisions on a possible CPI outcome today),” Poppe said.
Impact of CPI data on Bitcoin
Following Bitcoin’s impressive performance following the June CPI figures, the asset’s current trading status can be considered bullish despite the correction. This is due to investors showing no signs of selling off their holdings as the global crypto market surpasses $1 trillion in capitalization.
After experiencing a difficult first half of 2022, several crypto analysts, including Bloomberg commodity strategist Mike McGlone, believe Bitcoin will likely break out in the second half of 2022.
Elsewhere, as reported by Finbold, billionaire and CEO of crypto investment firm Galaxy Digital, Mike Novogratz, suggested that Bitcoin would have performed well if it traded between $20,000 and $30,000 to close. of the year.
Overall, Novogratz remains bullish on Bitcoin, saying that with increased adoption, the crypto will likely trade at $500,000 in five years.
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