Bitcoin
The bulls set up a new challenge at a crucial level of resistance while the traders were impatiently awaiting American inflation data.
The upper cryptocurrency increased to $ 122,056, testing Fibonacci extension of 1.618% from the bottom of the 2018 bear market and the bottom of the 2022 bear market. The extension of 1.618% is derived from the “golden report”, a mathematical constant venerated in finance, which is largely in nature and art. Many believe that this also influences human psychology and market movements.
This is the second attempt by Bulls to evolve the levels of resistance of the keys. They previously entered last month, but failed to maintain earnings, which finally led to a decrease in prices at less than $ 112,000.
A successful socket above the “gold ratio” would cement expectations for a gathering around $ 140,000, the most popular option to buy purchase on the Crypto derivative exchange. During the editorial staff, the call of $ 140,000 included a theoretical open interest of more than $ 3 billion, according to data source source measures.
However, if the Bulls do not hold their land for the second time, this suggests that the purchase pressure is insufficient, which gives a deeper correction.
During the editorial staff, BTC changed hands at $ 122,000, having reached a summit of $ 122,71 during the first hours of Asian negotiation, according to Coindesk data.
Focus on American inflation
The data scheduled for Tuesday should show that the impact of Trump’s prices has slipped into inflation in July, which raises pricing pressures in the economy.
The basic consumer price index, which eliminates volatile food and energy costs, should have increased by 0.3% in July, according to the median projection in a Bloomberg survey among economists. In June, the basic IPC increased by 0.2% compared to the previous month.
A warmer than expected inflation print can trigger market volatility, but it is unlikely that it will dissuade the Fed from reduction rates in September, according to Marc Chandler, chief market strategist at Bannockburn Global Forex. In other words, the dollar downward trend could continue after the IPC report, which has given risky assets, including cryptocurrencies.
“With American interest rates that are still at the lower end of their ranges, despite a gentle reception in the United States’s reimbursement last week, we suspect that the market is vulnerable to what could prove to be the third consecutive monthly increase in the head of the dollar from one year to the next,” said Chandle in the market report on Sunday.
He explained that the report on low jobs in July was an important turning point that increased bets for a drop in Fed rates, ending the recovery rally against the dollar trend.
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