After a bad week, Bitcoin showed a strong recovery bounce, gaining momentum for three consecutive days. A Bitcoin trend reversal shows bullish dominance at $56,000, where two long-tailed candles are halting the decline.
With the market expecting an interest rate reduction in September, impending CPI data and the buzz around Ethereum ETFs are known bullish catalysts. Despite the apparent FUD among some whales, the overall market recovery continues.
Investments in US Bitcoin spot ETFs could be a bullish signal
The third day of positive gains for Bitcoin ETFs occurred on July 9, 2024, when there was a notable net inflow of $216 million. BlackRock’s IBIT led the charge with a $121 million boost, while Grayscale’s GBTC experienced a $37.5 million outflow. Bitcoin has rebounded after declining by 10.92% last week, and is up by 5.13% in just three days.
Source: Sosovalue
Possible Reaction of Bitcoin to U.S. June CPI Data
On July 11, at 8:30 a.m., the US Consumer Price Index (CPI) data for June 2024 will be made public. The estimate for the index is 3.1%, down from 3.3% final month. The CPI was 3.3% last month, slightly lower than the predicted 3.4%, which caused the price of Bitcoin to increase by 1.39%.
As seen last month, the Bitcoin price is expected to rise if the actual CPI is lower than the 3.1% estimate.
Conversely, market sentiment could turn negative if the actual CPI exceeds the projected 3.1%. This seem lead to another decline towards $56,000.
Bitcoin Price Performance
The cryptocurrency market is recovering as the Bitcoin price has rebounded sharply from the $56,000 barrier, although there has been a slight decline below it. During the pullback phase, the Bitcoin price revolved around the 200D EMA as it reversed from the overhead resistance trendlines.
Source: Tradingview
Upon closer inspection, a crucial support trendline comprising two distinct lower price rejection candles started the latest bullish reversal in Bitcoin. Within 72 hours, the price of Bitcoin rose by 5.13%, showing a double-bottom turnaround.
With an intraday gain of 1.23%, the Bitcoin price is currently trading above the 200D EMA, at $58,749.
Will the price of Bitcoin exceed $60,000?
The Bitcoin price signals a successful week’s conclusion as the recovery rally gains momentum. Given the pressure at the secondary trend-lines, a breakout rally could propel Bitcoin to a 7% rise to the 50D EMA at $62,921.
