Last week, the biggest impact on the market came from the discrepancies in the economic data released by the United States. This included the CPI on Tuesday, which was positive, leading to a market surge, with Bitcoin breaking through $123,000 to reach a new high, and ETH also climbing to $4,700. However, on Thursday, the Producer Price Index (PPI) deviated significantly from expectations, dampening market optimism, and the effects extended into the weekend, with cryptocurrency prices returning to the lows 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, followed by a pullback, currently forming what is known as a 'double top pattern'. According to technical analysis, a significant pullback is likely to occur. However, with the expectations of interest rate cuts in September and continuous institutional inflows, it is hard to imagine what negative factors could lead to a significant pullback in the cryptocurrency market, but it is still necessary to be cautious of risks.
This week, the key economic data to be released in the United States is relatively sparse, with unemployment data and manufacturing PMI not due until Thursday. Then, the focus will be on Powell's speech at the Jackson Hole Global Central Bank Annual Meeting on Friday night. Therefore, it seems that significant market volatility will be concentrated before the weekend, and early in the week, the market may fluctuate due to the results of Trump’s negotiations with Ukraine and Russia, especially some of Trump’s statements, but overall, the market is expected to be relatively calm.
"MICA Daily | Bitcoin's daily chart forms a 'double top pattern', need to be cautious of a pullback before the interest rate cut in September" was first published on (Block客).
