The July Consumer Price Index (CPI) report is out and just minutes after the U.S. Commerce Department published the readings, the bitcoin price soared.
Previously trading at roughly $23,850, the bitcoin price shot past the $24,000 mark. This shows that markets are feeling more hopeful that the attempts of the Federal Reserve to tame inflation might be successful and that they could reduce or stop rate hakes in their next September meeting.
Howard Greenberg, cryptocurrency educator at Prosper Trading Academy disclosed his view that the Fed will continue with its plan to increase rates in September, this news will then strengthen the market’s faith resulting in a steady price rally.
After a somewhat peaceful weekend where bitcoin traded around the $23,000 mark, the bulls took over on Monday morning which sent the price a little above $24,000. But the bears, not to be out done, took over and sent the price spiraling and trading slightly below $23,000. As investors waited with trepidation for the July CPI numbers, bitcoin’s price climbed up and returned above $23,000
The CPI, which analyzes price changes across a wide range of products and services, was below last month’s 9.1 percent and also below the 8.7 percent, the estimated value for this month. Bitcoin responded to the news by surging above $24,000.
The price of BTC even broke the $24,200 resistance and trades as high as $24,488. It is now above the $24,200 support zone and is consolidating gains. An immediate resistance is near the $24,450 level and the next major resistance is near $24,500. If it fails to clear this resistance, it could fall lower to a support level near $24,200. The next key support level is near $24,000.
If the bears manage to take control of the market again, they could push the price below the $24,000 support and the price may move to the $23,550 level or even below the 100 hourly simple moving average.
