Bitcoin (BTC) spiked to new one-week highs on July 11 as United States macroeconomic data delivered a bullish surprise.
Bitcoin quickly erases a trip to one-week highs
Data from Cointelegraph Markets Pro and TradingView showed a rapid but brief BTC price climb to $59,516 on Bitstamp.
This followed the June print of the US Consumer Price Index (CPI), which showed inflation slowing beyond expectations.
Year-on-year and month-on-month CPI both came in 0.1% lower than forecast, leading to a positive reaction across both crypto and US stock markets.
“The all items index rose 3.0 percent for the 12 months ending June, a smaller increase than the 3.3-percent increase for the 12 months ending May,” an accompanying press release from the US Bureau of Labor Statistics confirmed.
“The all items less food and energy index rose 3.3 percent over the last 12 months and was the smallest 12-month increase in that index since April 2021.”
Nonetheless, the initial gains proved shortlived, with BTC/USD quickly erasing the $1,000 it had initially added.
“Inflation coming down faster than expected. Local higher high for Bitcoin in response,” popular trader Jelle summarized on X (formerly Twitter).
“Time to let the dust settle, but safe to say it's much stronger than it was at the start of the month. Reclaim $60,000 and things will look much better.”
$60,000 remained the key level on the radar for market participants, with fellow trader Wolf identifying it as a target for a resistance flip.
“The 60-61.6k range is where the strongest resistance lies, due to horizontal and weekly 21EMA barriers,” he told X followers, referring to the 21-week exponential moving average at $60,900.
“If this level is cleared, the bulls will regain control.”
As Cointelegraph reported, other important lines in the sand within the Bitcoin bull market include the 200-day moving average and short-term holder cost basis, the latter still high above spot price at $64,088, per data from onchain analytics resource Look Into Bitcoin.
Short-term holders, the name given to the more speculative end of the Bitcoin investor cohort, held up to 2.8 million BTC at a loss when price hit four-month lows of $53,500 last week.
BTC price sentiment beholden to Mt. Gox pressure
The mood overall meanwhile remained cautious, as markets anticipated the start of distribution of coins belonging to creditors of defunct exchange Mt. Gox.
Related: Bitcoin traders’ profit margins repeat 2022 bear market — New research
Crypto commentator Zen suggested that a BTC price “nuke” could still result as funds hit exchanges, with two days required for the market to rebalance itself.
That view also held beyond trading circles, with Jamie Coutts, chief crypto analyst at financial services firm Real Vision, arguing that it would ultimately be a cathartic process.
“While painful in the short term, the distributions of the Mt.Gox reserve and government sales remove the annoying supply overhang, helping distribute coins to a wider array of holders, thereby growing the network and leaving Bitcoin even better off than before,” he wrote on X on July 10.
Coutts referenced ongoing BTC sales from the German government, which Cointelegraph continues to report on.
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