Last week, the biggest impact on the market was due to the pre-release discrepancies when the United States announced economic data. Among them, the CPI on Tuesday was favorable, causing the market to surge, with Bitcoin breaking through $123,000 to reach a new high, and ETH also climbing to $4,700. However, the Producer Price Index (PPI) on Thursday deviated significantly from expectations, dampening market optimism, and the impact extended into the weekend, with cryptocurrency prices returning to the low levels seen at the beginning of last week.
On the daily chart of BTC, many analysts have observed that Bitcoin reached new highs in mid-July and mid-August before experiencing pullbacks, currently forming a so-called 'double top' pattern. According to technical analysis, a significant pullback is very likely. However, with the expectation of interest rate cuts in September and continuous institutional inflows, it is hard to imagine any negative news that would lead to a substantial pullback in the cryptocurrency market, but it is still necessary to be mindful of risks.
This week, there are relatively few key economic data releases in the United States. The earliest will be the unemployment data and manufacturing PMI on Thursday, and the focus will be on Powell's speech at the Jackson Hole Global Central Bank Annual Meeting on Friday evening. Therefore, it seems that significant market fluctuations will concentrate before the weekend, and early in the week there may be market volatility due to Trump's negotiations with Russia and Ukraine, especially some of Trump's statements. Overall, the market is expected to be relatively calm.
