Bitcoin, Ethereum, Dogecoin Cool Down After Morning Spike On Positive Inflation Data: Analyst Underscores Importance Of King Crypto's Break Above $60K
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Leading cryptocurrencies gave up their early morning gains as the cooler-than-expected inflation data ended up becoming a ‘buy the rumor, sell the news’ event. What Happened: Bitcoin soared above $59,000 early hours as the Consumer Price Index slowed more than expected in June. However, the rally was halted as investors started to take profits, causing King Crypto to stabilize back in the $57,000 zone. Ethereum followed a similar pattern, rising to nearly $3,200 before retracing to the early $3,100s. The Open Interest in Bitcoin futures rose 1.36% in the last 24 hours to $29.18 billion. Typically, when OI grows while prices move sideways, it is usually seen as a positive signal and a probable upside breakout.
Reversing the week-long trend, the number of traders opening long bets for Bitcoin surpassed those opening bearish short bets. The Cryptocurrency Fear & Greed Index flashed " Extreme Fear" as of this writing, indicating that the market was nearing its bottom. Top Gainers (24-Hours) The global cryptocurrency market cap stands at $2.12 trillion, following a marginal contraction of 0.36% in the last 24 hours. In a similar story, stocks pulled back from record highs. The S&P 500 slipped 49.37 points, or 0.88%, to close at 5,584.54. The tech-heavy Nasdaq Composite retreated 1.95% to finish at 18,283.41. The Dow Jones Industrial Average recorded gains, inching 0.08% higher to hit 39,753.75. The positive inflation data heightened the chances of a Federal Reserve rate cut, causing investors to rotate out of big tech winners like NVIDIA Corp. NVDA. According to CME FedWatch, the odds of a rate cut during September's FOMC meeting are 84% as of this writing. See More: Best Cryptocurrency Scanners Analyst Notes: Popular cryptocurrency trader Kevin noted a "textbook bear flag" for Bitcoin, with a potential of dragging the cryptocurrency to $50,000. "If we can break above $60,000 and hold it then we can negate this pattern and start trying to form the inverse head n shoulders which would be bullish," the trader predicted. Prominent cryptocurrency trader Rekt Capital highlighted the significance of a daily close above $58,350 for Bitcoin to spark a rally to $60,600. As things stand, it faces strong resistance at the aforementioned level. Photo by Igor Faun on Shutterstock Read Next:
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