Bitcoin (BTC) soared above $61,000 during the early Asia session on Wednesday but clawed back all the gains accrued in the last 24 hours in the US session. The volatility associated with the release of the Consumer Price Index (CPI) data weighed on most altcoins including Ethereum (ETH) price and Ripple (XRP) price.
Bitcoin (BTC) Price May Gain Momentum After CPI Release
Bitcoin price gracefully weathered the headwinds following the loss of momentum due to resistance above $62,000 late last week by securing support at $58,000 on Monday. With a renewed technical outlook, BTC price returned above $61,000, rising to test the $62,000 hurdle.
Traders seem to be treading cautiously, with CPI coming in at 2.9% annually in July, lower than the expected 3%. The core CPI, which held steady at 3.2%, may narrow expectations of a 50 basis point cut while affirming a possible 25 basis point cut in September. The Fed matched economists’ dovish expectations at the end of July’s FOMC meeting, where interest rates were left between 5.25% and 5.5%.
Bitcoin price holds between crucial support at $58,000 and resistance at $62,000. The 200-day EMA reinforces the upper range limit, suggesting that a break above it could strongly benefit the bulls who aim for another debut past $70,000. The Super Trend indicator bucks the potential uptrend.
As per the previous Bitcoin price prediction, the CPI report is often accompanied by high volatility, which means that traders must be vigilant and not ignore another possible swing under $60,000. Holding above the lower $58,000 range will keep BTC within the safe zone, but breaking below this level could trigger a sell-off to $54,000 and even $50,000.
Ethereum Price Analysis As Bulls Make A Bold Move
Ethereum price strengthened the uptrend against bearish calls to $2,200 brought about by Jump Trading dumping $300 million. The bullish outcome above $2,700 is likely to have followed trader appreciation of $2,600 support, bucked by the Super Trend indicator.
Traders will watch for ETH price movement on either side of the $2,700 level. A continued increase in price will attract more people to buy ETH, thus increasing liquidity for a breakout above $3,000.
Conversely, the ETH price forecast shows that sliding below $2,600 could disappoint bulls, with most traders choosing to close their long positions. If tested, lower support areas at $2,500 and $2,300 will determine whether Ethereum recovers toward $3,000 or falls to test $2,000.
Ripple Price Presents Key Buy Signals
Ripple price exchanged at $0.5719 after breaking out of a bull flag, targeting a 22% move to $0.69. The cross-border money remittance token holds above the 20-day and the 50-day EMAs, upholding the bullish case.
A Moving Average Convergence Divergence (MACD)buy signal could propel XRP price to $0.69, with a subsequent breakout above $0.7 potentially leading to a $1 price target.
The breakout above the flag pattern is bullish, but it lacks momentum as trading volume falls. Based on CoinMarketCap data, the XRP price volume is down 6% to $1.2 billion. This means that bulls must move quickly to push Ripple above $0.6 support/resistance; otherwise, a correction to $0.54 and $0.5 levels is still on the cards.
Frequently Asked Questions (FAQs)
Yes. The CPI report showed inflation dropping to 2.9%, which will compel the Fed to lower interest rates in September, in turn boosting risk assets like BTC.
Bitcoin price jumped above $61,000 after the report, hinting at the uptrend continuing in August.
Bitcoin’s crash to $49,000 was met by increased take up of dips, fuelling a strong rebound above $60,000. Continued action toward the ATH will confirm whether BTC bottomed.
John Isige
John is a seasoned crypto expert, renowned for his in-depth analysis and accurate price predictions in the digital asset market. As the Price Prediction Editor for Market Content at CoinGape Media, he is dedicated to delivering valuable insights on price trends and market forecasts. With his extensive experience in the crypto sphere, John has honed his skills in understanding on-chain data analytics, Non-Fungible Tokens (NFTs), Decentralized Finance (DeFi), Centralized Finance (CeFi), and the dynamic metaverse landscape. Through his steadfast reporting, John keeps his audience informed and equipped to navigate the ever-changing crypto market.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/top-3-bitcoin-ethereum-ripple-price-analysis-btc-faces-cpi-litmus-test/
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