The U.S. Department of Labor announced last night that the producer price index (PPI) for July 2024 showed a monthly increase of 0.1%, the lowest since May and lower than the market expectation of 0.2%. The annual growth rate also dropped from 2.7% in June to 2.2%, the lowest since March and also lower than the market expectation of 2.3%. This shows that the price pressure in the United States continues to ease, which has encouraged all four major U.S. stock indexes to rise.
Bitcoin continued to fluctuate upward after the release of PPI data last night. After breaking through the $60,000 mark, perhaps due to short squeeze, it quickly climbed to the $61,575 level. As of the time of writing, it had slightly adjusted back to $61,045, up 1.91% in the past 24 hours.
It should be noted that another focused data, the U.S. Consumer Price Index (CPI) for July, will be released at 20:30 tonight. It may cause large fluctuations in the price of Bitcoin, so be alert to risks.
Bitcoin four-hour chart
First of all, according to the Bollinger Band indicator in the Bitcoin 4H level chart, the current price of Bitcoin is between the middle track and the upper track of the Bollinger Band, indicating that the market is in a strong upward trend. The upper and lower tracks of the Bollinger Band have begun to narrow, indicating that market volatility has decreased, but the price still remains above the middle track, indicating that there is still potential for an increase in the short term.
Secondly, according to the KDJ indicator in the Bitcoin 4H level chart, the K-line value and the D-line value are both at high levels, and the J-line value shows signs of overbought, which means that the market may face the possibility of a correction in the short term, but the stability of KDJ at a high level shows that the overall market sentiment is still bullish.
Finally, according to the MACD indicator in the Bitcoin 4H level chart, the DIF line is above the DEA line, and the two moving averages are above the 0 axis, showing a strong bullish trend. The MACD green bar chart turns red, indicating that the bullish momentum is gradually increasing, but there are no obvious signs of development at present, indicating that the market may continue to fluctuate and consolidate near the current price.
First of all, according to the Bollinger Band indicator in the Bitcoin 1H level chart, the current price of Bitcoin is close to the upper track of the Bollinger Band, indicating that the market has a certain upward momentum in the short term, and the upper and lower tracks of the Bollinger Band have expanded, which means that market volatility may increase. If the price continues to run near the upper track, it may continue to rise.
Secondly, according to the KDJ indicator in the Bitcoin 1H level chart, the K-line value and the D-line value are at a relatively high position, and the J-line value has entered the overbought area, which means that the market may have the risk of a correction in the short term. The KDJ indicator is more sensitive to short-term price fluctuations, so we need to be vigilant about short-term adjustments that may occur at any time.
Finally, according to the MACD indicator in the Bitcoin 1H level chart, the DIF line is above the DEA line, and both lines are above the 0 axis, indicating that the market has strong upward momentum. The MACD red bar chart gradually increases, further confirming the current bullish trend.
Comprehensive analysis: Bitcoin currently shows a certain bullish trend at the 4-hour level, and both Bollinger Bands and MACD show the market's upward momentum. However, the KDJ indicator is in the high overbought area, and we need to be alert to the risk of a possible correction in the short term. Bitcoin shows a strong bullish trend at the 1-hour level, and both Bollinger Bands and MACD indicate that the market has the potential to rise further. However, the KDJ indicator shows an overbought signal, and there may be a certain correction pressure in the short term.
In summary, the great master gives the following suggestions for reference
Suggestion 1: Buy around 60500-60800, target 61800-62300
Suggestion 2: Short around 61800-62300, target 60500-60000. (Stop loss is set according to the position, beware of the instantaneous spikes caused by the CPI data)
Writing time: (2024-08-14, 19:00)
(Text-Daxian Talks about Coins)
