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Arslan Butt
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Arslan Butt
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Bitcoin has recently crossed the $61,000 threshold, stirring renewed interest in its price trajectory as the market anticipates further movements driven by U.S. inflation data.
The latest inflation figures, which matched expectations, have left Bitcoin in a tight trading range near $60,920, setting the stage for potential volatility.
With the U.S. dollar showing signs of weakening and Bitcoin forming a critical technical setup on the charts, traders are now closely watching key levels that could dictate the next significant move.
As the cryptocurrency approaches the crucial $61,250 resistance level, Bitcoin price predictions are increasingly focused on whether it will break higher or succumb to downward pressure.
U.S. Dollar Weakens as Inflation Data Meets Expectations, Bitcoin Remains Rangebound
The U.S. dollar weakened on Wednesday after the latest inflation data came in largely as expected, offering little surprise to markets but reinforcing the narrative of a cautious Federal Reserve.
The Core Consumer Price Index (CPI) for July rose by 0.2% month-over-month, in line with forecasts and matching the previous month’s increase.
The overall CPI also ticked up by 0.2%, consistent with expectations and a significant improvement from the -0.1% recorded in June.
On a year-over-year basis, CPI eased slightly to 2.9%, just below the anticipated 3.0%, which matched the previous month’s figure.
Key Points:
- Core CPI m/m: Increased by 0.2%, as expected, and consistent with June’s rise.
- CPI m/m: Rose by 0.2%, aligning with forecasts and reversing the -0.1% decline in June.
- CPI y/y: Slipped slightly to 2.9%, just under the forecasted 3.0%, which matched the previous reading.
Dollar Weakness: The slight softening of the dollar post-CPI release could have provided a tailwind for Bitcoin, but the cryptocurrency remains largely rangebound near $60,000.
As markets digest this latest inflation report, Bitcoin remains in a holding pattern. The broader market is awaiting clearer indicators that could trigger a more decisive move.
Bitcoin Nears Critical Breakout Point at $61,000; What’s Next?
Bitcoin (BTC/USD) is currently trading at around $60,920, showing a critical technical setup on the 4-hour chart. The price has formed a symmetrical triangle pattern, which often precedes a breakout.
The key resistance level to watch is $61,250, while immediate support is just below $60,500. This narrow range indicates that Bitcoin is likely to make a significant move soon, either breaking above resistance or dropping below support.
The 50-day Exponential Moving Average (EMA) is trending upward, which adds to the bullish sentiment.
Additionally, the Relative Strength Index (RSI) is holding steady above 50, suggesting that there’s still bullish momentum in the market, but not to the extent of being overbought.
This means that Bitcoin has room to move higher if it can break through the $61,250 resistance level.
If Bitcoin manages to break above $61,250, we could see it move toward the next resistance level around $62,700.
On the downside, if it fails to hold above $60,500, the price could drop towards the next support at $59,000.
Given the current setup, buying above $60,500 could be a strategic move, while a break below this level may indicate a need to reassess.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
