Bitcoin (BTC) is looking for validation above the $60,000 psychological level, renewing investors’ optimism amid positive CPI data. However, a trading expert warns BTC could still face resistance in the low time frame, potentially causing a short-term reversal.
The analyst is CrypNuevo, on X, who has a good reputation with accurate trades and Bitcoin price predictions. According to him, BTC has a key wick in the one-hour time frame, inside of a resistance zone.
If the analysis plays out as expected, the wick could serve as a magnet, attracting liquidity to the upside. In this case, CryptoNuevo expects to see Bitcoin trading at $62,000, creating a bull trap outside of the zone.
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However, the analyst points to a potential resistance between $61,800 and $62,200 that coincides with the 50-day exponential moving average (1D 50EMA). As a key resistance, traders could look to short Bitcoin at these prices, potentially causing a reversal.
A rejection to break this level could drive BTC to as low as $58,000 before bouncing back up. Notably, the trader says he will look for short opportunities in this setup.
CPI data release and Bitcoin price resistance
The United States Core Consumer Price Index (CPI) came within the market’s expectations, while the CPI was, positively, slightly below. In particular, the CPI data shows a year-over-year inflation of 2.9%, which is better than the expected 3.0%. Finbold retrieved the data on August 14, a few minutes after the official release.
Investors and analysts are currently interpreting this data with a bullish bias for the next few weeks. This is because the Federal Reserve has deemed CPI, together with unemployment data, as the leading indicators to decide on a possible interest rate cut – which market participants believe will start a bull rally.
Interestingly, unemployment came above expectations for a three-year high at 4.3%, while inflation appears to slow down.
Therefore, the market could expect a positive price action in the following weeks despite this current potential short-term correction. It is important, however, to remain cautious and avoid overexposed positions, as everything can happen with cryptocurrencies.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
