Bitcoin Price Forecast Next Week: Will US CPI Push BTC Price Above $31,500 Or Plunge Below $30K?

As we approach the end of another tumultuous week filled with several macro events, all eyes are on Bitcoin (BTC), the digital gold standard of the crypto market. As the US CPI data is set to be announced on 12 July, investors wonder whether it would boost the BTC price or bring a severe plunge below $30K. 

Bitcoin Investors May Enjoy A Profitable Week

The CPI data, a widely watched inflation indicator, has been a significant influence on Bitcoin’s price movements. Last month, US inflation slid to a two-year low of 4%, down from 4.9% in April. This is a significant decrease from a year ago when the US Consumer Price Index (CPI) hit its peak at 9.1%. Despite this, core prices have remained somewhat sticky, slipping back to 5.3% from 5.5%.

The Federal Reserve’s continued hawkish stance has led to a sharp reversal in the slide in yields that resulted from these numbers. With another rate rise expected later this month, this week’s CPI numbers are unlikely to influence the Federal Reserve’s actions in the immediate two weeks. 

However, they might provide some insight into whether we can anticipate another rate hike in September. The June CPI is projected to slow further to 3.1%, with core prices expected to slow to 5%.

Experts posit that an increase in the Consumer Price Index (CPI) could lead to heightened volatility in the cryptocurrency market. However, this doesn’t automatically mean losses for crypto traders.

However, day traders can use CPI data to their advantage. They can long or short Bitcoin during market dips or highs, often triggered after CPI news, and sell when the market stabilizes, turning a profit. 

What To Expect From BTC Price?

Bitcoin recently managed to climb back above the $31,000 mark, only to face significant selling pressure that drove the price down to the 100-day exponential moving average (EMA) at $30K. As of writing, BTC price trades at $30,262, declining over 0.2% from yesterday’s rate. 

However, a rebound off the 100-day EMA indicates a bullish sentiment, with traders seizing minor dips as buying opportunities. This increases the likelihood of a surge past the resistance zone of $31,200 to $31,500.

If this occurs, we could see Bitcoin price on a journey toward the $40,000 mark. While the bears may attempt to defend this upward movement at $32,500, the buying force is expected to prevail.

On the flip side, if the price dips and breaches $29,600, it would imply that the bears are in control. This could potentially lead to a drop to the support zone at $26,500. 

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