Bitcoin, altcoins are sold off at record high inflation, but traders still expect BTC to consolidate
Global financial markets find themselves in a lower trend on June 10 after the consumer price index (CPI) reached a sharp increase of 8.6% from year to year, the highest print since 1981.
The warmer-than-expected CPI printout resulted in a collapse in support of $ 30,000 and the Bitcoin (BTC) price sold at a daily low of $ 28,852 before dip buyers managed to bid the price back over $ 29,000.
Here is what several market analysts are saying about the outlook for Bitcoin going forward since there appears to be little relief on the inflation front and the Federal Reserve is still determined to raise interest rates.
Dollar strength weighs heavily on risk assets
The effect of the high CPI pressure on two benchmark indices in the financial markets, the dollar index (DXY) and the S&P 500 (SPX), was affected by il Capo from Crypto, which posted the following charts note that “After CPI results, the #DXY pump continues and #SPX continues to fall freely.”
Market analyst Kevin Svenson also said that the Fed’s inability to curb inflation is likely to translate into choppy price movements for next year.
With inflation, at 8.6%, this means that interest rate increases are likely to increase. $ DXY goes parabolic. #BTC and most asset classes will probably have to deal with a lot of spreads at the lowest. Sideways for a year possibly.
Immediate recovery is not likely.
– Kevin Svenson (@KevinSvenson_) June 10, 2022
There is potential for a withdrawal below $ 28,000
Should the price of BTC continue to trend lower, crypto trader and pseudonym Twitter user Altcoin Sherpa will sier trading under $ 28,000 is possible.
Altcoin Sherpa sa,
“$ BTC: EMAs look best in a while of 4h, but the overall market structure for high time frame is still bearish. Do not really do anything active, just observe. Looks like $ 28K> is next time if this current range is lost.
Related: The Bitcoin price falls below $ 29.5K after ‘unexpected’ 40 years of high US inflation
BTC must claim back $ 30K to prevent further inconvenience
Insight into what it takes to avoid a $ 28,000 withdrawal of support was provided by market analyst and pseudonymous Twitter user CrediBULL Crypto, who posted the following chart shows the “unfortunate” track from the $ 30,000 area. The analyst suggested that this “was the moment we needed to follow up.”
CrediBULL Crypto sa,
“On support, but it’s been tested four times now, so more likely it makes room for $ 28K. IF we can get back over $ 30K, $ 28K can be avoided.”
The total market value of cryptocurrency is now $ 1.192 trillion and Bitcoin’s dominance is 46.6%.
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