Bitcoin Confuses Investors With Consolidation Below $31K! Will CPI Data Bring Breakthrough Moment For BTC Price?

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As Bitcoin continues to hold the spotlight, it has been causing a stir among investors due to its consolidation below $31,000. With the latest Consumer Price Index (CPI) data now released and falling below expectations, the question arises whether bullish CPI will create a pump moment in the BTC price. 

Today’s release of the June Consumer Price Index (CPI) data by the Bureau of Labor Statistics has sparked a wave of positivity across the Bitcoin and broader cryptocurrency market. The recent statistics indicate an unexpected slowdown in inflation, fueling optimism for a favorable future outlook.

According to the Bureau of Labor Statistics (BLS), the U.S. inflation rate, as gauged by the Consumer Price Index (CPI), experienced a decline from 4.0% in May to 3.0% in June on a year-over-year basis, contrary to the anticipated dip to 3.1%. In terms of monthly changes, the CPI saw an increase of 0.2% in June, compared to 0.1% in May, albeit falling short of the projected 0.3% rise.

Bitcoin’s price, which has largely been oscillating between $30,000 and $31,000 in recent days, experienced a slight increase to $30,900 following the report’s release and eventually broke above $31K. However, it quickly relinquished this gain, settling just below $30,800.

The report released today indicates a continued downward trend in headline inflation, with June’s rate of 3% marking a decrease from a 2022 peak of 9.1%. Perhaps of greater significance to Federal Reserve policymakers is the shift in the core inflation rate, which dropped to 4.8% from 5.3% after persistently staying above 5% throughout the year.

Bitcoin experienced a rebound from the 20-day Exponential Moving Average (EMA) at $30,600 to continue its uptrend. Following the CPI news, Bitcoin experienced a massive swing, with a low formed at $30.5K and a high at $31K. This suggests both bulls and bears are fighting heavily and a quick retest will determine strength.

Currently, Bitcoin is trading at $30,782, with a surge of 0.8% from yesterday’s rate. To avert a potential decline, bulls will need to hold the price above $30,500 and drive it toward the resistance zone, which lies between $31,000 and $31,500. This zone is expected to face significant selling pressure, but if the bulls manage to surpass this hurdle and $32.5K, the price could potentially surge toward the next key resistance at $40,000.

On the flip side, if the price dips below the 20-day EMA, it could prompt numerous short-term bulls to cash in their profits. This could lead the price to drop towards $29,710. A correction of this level would imply that the price might decline further and consolidate at $27,500.