The United States’ newest release on its inflation rate for July has created a celebration reason for many, especially the crypto sector. According to the Department of Labor publication, the July customer price index (CPI) report dipped to 8.5%. This was against its last year’s value of 9.1%.
With the report’s release, many people have expressed their recommendations for the Biden Administration and their shock. Some confessed that they have expected to see a spike in inflation due to some of the prevailing factors at the moment. They mentioned that the ongoing Ukraine-Russia war and price increase in goods were expected to play a role.
US President Joe Biden has reacted to the great news of the CPI report. Commenting from the White House, he maintained that the news shows that the economy ran with zero percent inflation for July.
President Biden further mentioned that their approach to controlling inflation yields positive results. Hence, he encouraged Congress to pass the inflation Reduction Act. This will help to build an economy that would reward hard work.
In the past six months, the US reported a negative GDP value for the two quarters of the year. Inflation also rose within the period, as indicated by the high-priced economy.
The report pointed out the monthly energy cost reduction that hit 4.6%. The value contradicts that of 2021, which gave a climbing curve to be at 32.9%. On the part of food expenses, there is a continuous uptrend.
The report recorded an 11% increase for July and a 10.9% rise on a year-over-year basis. Pundits reported that this value stands as the highest surge since May 1979.
Gasoline prices dipped by 7.7% monthly to give drivers a little aid. However, it remained higher than the value for 2021 by 44%.
Crypto Market Followed An Uptrend
In a new development, the crypto market is making positive progress in price and value. However, the crypto space has been in shamble due to the impact of the crypto winter and other combining factors.
In addition, the geopolitical climate and macro influences had been quite unfavorable. As a result, bitcoin and most major crypto assets experienced drastic price drops over the first half of 2022.
While expecting the CPI July report, many cryptocurrencies dropped on August 9. On its part, BTC plummeted by 4% to trade at $23,100. This sudden downward move was after it hit the $24,000 level as of Monday. For Ethereum, the drop went below 5%.
But the market prices are making a bounce with most assets moving uptrend. For example, while Bitcoin has climbed above $24,200, Ethereum is increasing slightly beneath $1,900 at the time of writing.
Featured image from Phemex, Chart from TradingView.com
Bitcoin, Ethereum Technical Analysis: BTC Climbs To 2-Week High
Bitcoin continued to trade above $20,000 on Wednesday, as the token remained near a two-week high. Bullish momentum in cryptocurrency markets has been higher this week, with prices surging after a recent downward spell. Ethereum, on the other hand, was largely unchanged in today’s session.
Bitcoin (BTC) was once again trading above $20,000, as the token continued to trade near a two-week high.
BTC/USD surged to a peak of $20,479 late in Tuesday’s session, which was its highest point since September 13.
On Wednesday, prices remained near this level, however slipped marginally after failing to extend a breakout of a key resistance point.
The token slipped below this ceiling of $20,350 earlier today, and as of writing, is trading at $20,024.63, which remains higher than yesterday’s low of $19,917.91.
As can be seen from the chart, the 14-day relative strength index (RSI) has also declined today, with the indicator now tracking at 52.45.
This mark is marginally under a support level of 53.00, and should the reading continue to depreciate, we will likely see BTC back below $20,000.
Ethereum (ETH) was mostly consolidating on Wednesday, as the token fell back towards a support point of its own.
Following a high of $1,364.97 during yesterday’s session, ETH/USD dropped to an intraday low of $1,335.89 earlier in the day.
As a result of this slippage, the world’s second largest cryptocurrency moved back towards its floor of $1,330, a level which it broke out of less than 24 hours ago.
Looking at the chart, the decline appears to have come once the RSI failed to move beyond yesterday’s resistance of 44.90.
Currently price strength is tracking at 43.67, and seems to be heading for a floor close to the 42.00 level.
Should it arrive at its destination, then there is a strong likelihood that ethereum will be under $1,300.
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Do you anticipate ethereum falling below $1,300 this week? Leave your thoughts in the comments below.
Eliman brings an eclectic point of view to market analysis, he was previously a brokerage director and retail trading educator. Currently, he acts as a commentator across various asset classes, including Crypto, Stocks and FX.
Image Credits: Shutterstock, Pixabay, Wiki Commons
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Evaluating the Q3 performance of BTC, ETH, and BNB
Although the broader financial market experienced a downturn in the last quarter, data from CoinGecko showed that the global cryptocurrency market capitalization rose by 9% within the 90-day period.
Interestingly, despite the growth in the global cryptocurrency market capitalization, the leading cryptocurrency asset Bitcoin [BTC], closed the quarter with a decline in its price.
According to cryptocurrency research platform Cryptorank, trading below the psychological $20,000 price region, BTC closed Q3 with a 1.2% decline in its price. This represented a 143% decline in the price of the king coin since the $43,776, it closed Q3 2021 with.
After a significantly bearish half year, the price per BTC rallied by almost 20% in July. It closed the trading month at an index price of $23,333, data from CoinMarketCap revealed.
The bears, however, regained control of the market, forcing the price of the leading coin to the $20,000 region by the end of August.
After rallying to a high of $22,527 by 13 September, the bears initiated a downtrend that caused BTC to close Q3 at the price level it started at.
ETH and BNB have these stories to tell
While the price per BTC fell within the period under review, Ethereum [ETH] and BNB saw growth in their prices. Closing the quarter at $1,328, data from Cryptorank showed that the alt’s (ETH) price grew by 25% within the 90-day period.
It is common knowledge that the price rally was primarily due to the Ethereum merge, which occurred on 15 September.
Also seeing gains in July, the price per Ether coin grew by 57% within the 31-day period. However, after crossing the $2000 price mark on 14 August, the bulls could not sustain the price rally.
In the weeks leading up to the merge, the doubts surrounding the event’s success led to increased ETH outflows. The much-awaited price rally failed to materialize upon completion as ETH closed the trading month at $1,328. Most of ETH’s gains in the 3-month were realized during the July rally.
Lastly, as for BNB, it closed the quarter at a high of $284.24, growing its price by 24% within the 90 days under review.
It sold for as high as $333 per BNB as of 10 August, after which the bears visited and initiated a downward reversal.
TA: Bitcoin Price Reclaims $20K, Why This Could Be The Start of Larger Rally
Bitcoin price gained pace for a move above $20,000 against the US Dollar. BTC is showing positive signs and might rise further above $20,500.
- Bitcoin started a steady increase above the $19,200 and $19,500 resistance levels.
- The price is trading above $20,000 and the 100 hourly simple moving average.
- There is a connecting bullish trend line forming with support near $20,000 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair is gaining pace and might rally further above the $20,500 level.
Bitcoin Price Gains Pace
Bitcoin price formed a base above the $19,000 level and started a steady increase. BTC was able to clear the $19,500 and $19,650 resistance levels.
The bulls were able to pump the price above the $20,000 resistance zone. The price traded as high as $20,475 and the price is now correcting gains. It is trading above $20,000 and the 100 hourly simple moving average. Bitcoin is now slowly moving lower below $20,400.
It is trading well above the 23.6% Fib retracement level of the upward move from the $18,937 swing low to $20,475 high. There is also a connecting bullish trend line forming with support near $20,000 on the hourly chart of the BTC/USD pair.
Source: BTCUSD on TradingView.com
On the upside, an immediate resistance is near the $20,450 level. The next major resistance sits near the $20,500 zone. A clear move above the $20,500 resistance might start another increase. In the stated case, the price could even surpass the $21,200 resistance zone. The next major resistance is near the $22,500 zone.
Dips Limited in BTC?
If bitcoin fails to rise above the $20,500 resistance zone, it could start a downside correction. An immediate support on the downside is near the $20,100 zone.
The next major support is near the $20,000 zone and the trend line. A downside break below the trend line might send the price towards $19,700. It is near the 50% Fib retracement level of the upward move from the $18,937 swing low to $20,475 high. The main support is near $19,500, below which the price might drop to $19,200.
Hourly MACD – The MACD is now gaining pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Major Support Levels – $20,100, followed by $20,000.
Major Resistance Levels – $20,500, $21,200 and $22,500.
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