{"id":6289,"date":"2022-08-10T05:43:37","date_gmt":"2022-08-10T05:43:37","guid":{"rendered":"http:\/\/cryptoheretostay.com\/?p=6289"},"modified":"2022-08-10T05:43:37","modified_gmt":"2022-08-10T05:43:37","slug":"bitcoin-drops-to-support-as-looming-cpi-print-shakes-up-crypto-and-stock-markets","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=6289","title":{"rendered":"Bitcoin drops to support as looming CPI print shakes up crypto and stock markets"},"content":{"rendered":"<script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script>\n<p>Crypto and equities markets took a bit of a tumble on Aug. 9 as traders grew a bit skittish ahead of tomorrow\u2019s Consumer Price Index (CPI) report. The details of the print will shine a light on whether the Federal Reserve\u2019s aggressive interest hikes are effective in tamping runaway inflation and it could have an impact on the size of future hikes.\u00a0<\/p>\n<p>Earlier in the week, Tesla CEO Elon Musk suggested that July data will reflect the United States reaching peak inflation and that any recession will be \u201cmild to moderate.\u201d Right now, the consensus is that July data will be lower than the record-breaking 9.1% figure seen in June. The price of energy commodities (oil, natural gas) noticeably decreased in July and the Fed is hopeful that the previous back-to-back 0.75 basis-point hikes will combat soaring prices in other parts of the economy.<\/p>\n<p>As is custom, Bitcoin (BTC), Ethereum (ETH) and most altcoins pulled back as traders de-risk ahead of the CPI print. BTC price dropped as low as $22,800, while Ether corrected to $1,670. The rationale that traders are sheltering in stablecoins is sensible, but from a technical analysis point of view, the Aug. 9 pullback is simply a lower support test after the most recent support-resistance flip of the past week, and large-cap assets like ETH and BTC continue to trade within their multi-week ranges. <\/p>\n<h2>Traders take shelter until CPI publishes<\/h2>\n<p>According to independent market analyst Micha\u00ebl van de Poppe, the fear surrounding the Aug. 10 CPI is \u201cunwarranted\u201d and once the series of retests is complete, BTC price should rally toward $28,000. <\/p>\n<p lang=\"en\" dir=\"ltr\">#Bitcoin correcting due to several reasons. <\/p>\n<p>\u25ab\ufe0f (Unwarranted) fears among CPI data tomorrow. <br \/>\u25ab\ufe0f Resistance around $24.3K continuing being resistance.<\/p>\n<p>Expecting to see a test around $23-23.2K to hold, so trend continues. <\/p>\n<p>Another test of resistance -&gt; break-out towards $28K. pic.twitter.com\/hqcJ6Ry64c<\/p>\n<p>\u2014 Micha\u00ebl van de Poppe (@CryptoMichNL) August 9, 2022<\/p>\n<p>Adding to the narrative that the current pullback is \u201cexpected\u201d, trader @52kskew suggested that BTC\u2019s price action is being impacted by a \u201chealthy unwinding in perps\u201d as spot Bitcoin is sold at a \u201clogical resistance.\u201d <\/p>\n<p lang=\"en\" dir=\"ltr\">$BTC Healthy unwinding in perps underway. <br \/>spot being sold off at logical resistance. pic.twitter.com\/Fj8hgSjDNV<\/p>\n<p>\u2014 \u0394 (@52kskew) August 9, 2022<\/p>\n<p>Pseudonymous trader Big Smokey explained that the market-wide correction is simply \u201cde-risking from traders awaiting this week\u2019s CPI print.\u201d <\/p>\n<p lang=\"en\" dir=\"ltr\">Just a lil de-risking from traders awaiting this week&#8217;s CPI print. Up or down who knows, but some traders seem to be interpreting recent statements from the Fed + post CPI print market performance as a sign they&#8217;ve gone &#8220;dovish.&#8221; Still swinging spot longs personally.<\/p>\n<p>\u2014 Big Smokey (@big_smokey1) August 9, 2022<\/p>\n<p>According to Big Smokey, the trend of traders \u201cinterpreting recent statements from the Fed + post CPI print market performance\u201d as dovish continues and if this trend holds, the market could bounce if inflation figures are lower than June. <\/p>\n<p>Analyst Dylan LeClair, on the other hand, believes that in the grand scheme of things, equities are in the \u201clate stages of an equities bear market rally\u201d and he suggested that BTC will sweep swing lows in the next six to 12 months if a \u201ccorrelation 1.0 event\u201d occurs. <\/p>\n<p lang=\"en\" dir=\"ltr\">i believe we are in the late stages of an equities bear market rally (if it&#8217;s not already over)<\/p>\n<p>BTC will not be catching a bid during a large equity market selloff<\/p>\n<p>i have dry powder set aside for a correlation to 1.0 event that likely occurs over the next 6-12 months pic.twitter.com\/Fx1iARy8ZO<\/p>\n<p>\u2014 Dylan LeClair  (@DylanLeClair_) August 9, 2022<\/p>\n<p>The total cryptocurrency market capitalization now stands at $1.09 trillion, and Bitcoin\u2019s dominance rate is 40.5%.<\/p>\n<p class=\"post-content__disclaimer\">The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.\n<\/p>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<br \/><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/cointelegraph.com\/news\/bitcoin-drops-to-support-as-looming-cpi-print-shakes-up-crypto-and-stock-markets\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Crypto and equities markets took a bit of a tumble on Aug. 9 as traders grew a bit skittish ahead of tomorrow\u2019s Consumer Price Index (CPI) report. The details of the print will shine a light on whether the Federal Reserve\u2019s aggressive interest hikes are effective in tamping runaway inflation and it could have an [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":6290,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[2],"tags":[],"class_list":["post-6289","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin-news"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/6289","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=6289"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/6289\/revisions"}],"predecessor-version":[{"id":6291,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/6289\/revisions\/6291"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/6290"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6289"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6289"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6289"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}