- Bitcoin remains range-bound as traders await CPI data and Fed minutes that could influence monetary policy decisions.
- The Truflation index shows inflation dropping below 2%, raising expectations of future Federal Reserve rate cuts.
- Technical patterns suggest bullish momentum could return if Bitcoin breaks resistance near $108,547 in the coming days.
Bitcoin has seen little price movement over the past six days, remaining in a tight range between $107,000 and $110,000. The cryptocurrency is responding cautiously before the release of the minutes of the Federal Reserve meeting of May, which is expected to be released on July 9. Traders are very active watching those indicators in the economy that might impact monetary decisions in the future.
Existing statistics of the Truflation US Inflation Index reveal a fall of 2.27% to 1.70% within less than two weeks. The decline has contributed to the argument that the Federal Reserve may look into relaxing its money policy arrangements earlier than anticipated, particularly now that it has been preceded by the release of the Consumer Price Index report scheduled on July 15.
The FedWatch tool predicts no July rate cut.
The CME FedWatch Tool indicates that 95% of traders and investors, in the end, are of the view that the Federal Reserve will not move on interest rates at its meeting on July 30. This feeling is based on a June jobs report that indicated that the U.S. economy gained only 147,000 jobs, indicating moderate growth that could not facilitate an immediate policy change.
Although it is unlikely that we will cut interest rates in July, the market is hinting at higher chances of a change in interest rates in September. Presently, 61% of investors are expecting a fall cut of 25 basis points as inflation is still decreasing.
The technical analysis predicts an upward BTC momentum.
There is a bullish pennant structure on the four-hour chart of Bitcoin that could signify a price breakout on the upside. An attack on the resistance level of up to 108,547 may cause the price to reach more than 113,913. The Relative Strength Index is 51 and indicates that there is a possibility of additional growth. In the meantime, Awesome Oscillator bars have changed to green, an indicator of declining bearish indications.
The July 15 CPI data and the tone of meeting minutes on the part of the Fed shall substantially determine the direction taken by Bitcoin in the succeeding weeks. The positive prospect of inflation and the proximity of the Fed could be the impetus required to take Bitcoin to a different level. Until now, the asset is to remain in the same range of prices because uncertainty keeps having an effect on investor mood.
