Bitcoin is facing strong selling pressure around the $120,000 level. The recent attempt to break higher was rejected, resulting in a 3% pullback to about $118,525 on Tuesday. This short-term weakness is being emphasized by a "Death Cross" on the four-hour chart and a bearish divergence on the daily RSI indicator, both suggesting a possible correction.
If the price closes below the mid-term uptrend line, the price may be pushed back to the support level around $117,000. However, the macro bullish trend remains strong, as evidenced by the daily MACD indicator, which has recently signaled a buy.
However, the macro bullish trend remains strong, as shown by the daily MACD indicator. Notably, the daily MACD line has crossed above the signal line amid a rising bullish histogram chart.
July Inflation Lower Than Expected
The U.S. Bureau of Labor Statistics released the July Consumer Price Index (CPI) data on Tuesday, August 12. According to composite data analysis from Forex Factory, July's CPI data was lower than expected at 2.7% year-over-year, while economists predicted CPI would reach 2.8% year-over-year.
According to data from Kalshi, a prediction market platform regulated by the CFTC, a majority of traders, accounting for 74%, expect Tuesday's CPI to be at 2.7%. Inflation in July surged due to the ongoing trade war, especially between the United States and China.
Does This Mean That the Next Price Increase of Bitcoin Will Happen?
The price of Bitcoin has experienced significant volatility during the previous CPI announcement. According to cryptocurrency analyst Ali Martinez, the price of Bitcoin usually rises after CPI data is announced if the major coin declines before the official announcement, and vice versa.
The Macro Platform Remains Strong
The price of Bitcoin continues to be heavily influenced by macro fundamental factors, despite short-term volatility due to impactful news. The strong accumulation of Bitcoin by institutional investors has exacerbated the supply-demand shock, which has activated a macro bullish sentiment.
According to market data analysis from CoinGlass, the supply of BTC on centralized exchanges has decreased by 7 thousand over the past 30 days, hovering around a multi-year low of about 2.24 million.
In the long run. While traders monitor hourly charts, a leading analyst has a longer-term strategy. Below is his perspective on how to participate in this new bullish market.