Global financial markets find themselves lower again on June 10 after the consumer price index (CPI) arrived at 8.6% year-over-year increase, the strongest impression since 1981.
The warmer than expected CPI print led to a collapse of the $30,000 support and Bitcoin (BTC) The price was sold off to a daily low of $28,852 before the bearish buyers managed to push the price back above $29,000.
Here’s what several market analysts are saying about Bitcoin’s future prospects, as there seems to be small relief on inflation front and the Federal Reserve is still determined to raise interest rates.
Dollar strength weighs heavily on risky assets
The effect of the high CPI print on two financial market benchmarks, the Dollar Index (DXY) and the S&P 500 (SPX), was discussed by Crypto’s Il Capo, who job the following charts noting that “After the CPI results, #DXY continues to pump and #SPX continues to fall.”
Market analyst Kevin Svenson also said the Fed’s inability to rein in inflation will likely translate into choppy price action for next year.
Instant recovery is not likely.
— Kevin Svenson (@KevinSvenson_) June 10, 2022
There is potential for a pullback below $28,000
If the price of BTC continues to fall, crypto trader and pseudonymous Twitter user Altcoin Sherpa said trading below $28,000 is possible.
Altcoin Sherpa said,
“$BTC: EMAs look the best they’ve seen in a while on the 4h, but the overall high-maturity market structure remains bearish. Do nothing really active, just observe. It seems clear that $28,000 > is next if this current zone is lost.
BTC must recover $30,000 to avoid further declines
An overview of what it would take to avoid a pullback from the support at $28,000 was provided by market analyst and pseudonymous Twitter user CrediBULL Crypto, who job the next chart showing the “unfortunate” retracement from $30,000, the zone. The analyst suggested this was “the time we need to see the follow-up.”
CrediBULL Crypto said:
“On the support, but it’s been tested four times now, so it’s more likely to give way to $28,000. IF we can get back above $30,000, then $28,000 can be avoided.
The overall cryptocurrency market capitalization now stands at $1.192 trillion and Bitcoin’s dominance rate is 46.6%.
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