8/10 BTC Cryptocurrency Analysis:
CPI is coming soon. Although economists predict that the CPI data in July will narrow, Wall Street stock analysts are avoiding risks. What signal does this bring us? As the price trend narrows, will BTC surge again like in June?
Hi, girls and boys, welcome to Uncle Cat Talking about Coins.
As of the time of posting, BTC is priced at around 29,500. The market hit 30,165 again last night and then continued to fall until it reached 29,500. It is currently in a low-amplitude fluctuation range.
In fact, I have made a detailed analysis of the rally in the past two days. I concluded that the main dealers used emotions to pull the market, including the futures market as a buffer to prevent positions from being closed. Everything seems to be defending the losses of the bulls caused by the price drop. According to Bloomberg's chart analysts, as the market price range narrows, according to past experience, the market price may surge in the near future like in June. I personally think that although the chart data shows this, the current market conditions may not have such emotions and trading enthusiasm.
Tonight's CPI data is coming soon. Many economists said that the July CPI data may be slightly tighter, indicating that the US economic data in July is good. However, the practical Wall Street traders quietly withdrew from tonight's trading, probably because they are more cautious about the impact of tonight's CPI on US stocks. It seems that the theoretical school and the practical school have different attitudes.
In fact, from the perspective of the macro economy, if the narrowing of the CPI data in July is just an objective view, the financial market has given an accurate answer. After a continuous surge, the US stock market opened down this week. Although it rebounded slightly at the close, it would be a temporary solution. In fact, the recent setback of the US stock market is basically due to the 28% increase in European energy prices this month, which led to a decline in the technology and energy sectors, the pillars of the entire US stock market. Nvidia, which has just entered the trillion-dollar club, also suffered a setback after a continuous rise, which has dealt a blow to the enthusiasm of the US stock market. The market's reaction shows that most people are not optimistic about today's CPI data. Judging from the risk aversion of Wall Street traders, although the CPI data in July narrowed, it will most likely increase the inflation rate in the United States. This will lead to setbacks in the financial investment field.
In fact, for the crypto market, a single financial data can no longer cause too much volatility in the market, but the massive decline in US stocks may break the defensive position currently raised by the main dealers. This is what we want to see.
The recent hot topics, the Ark female stock god's ETF all passed view and PayPal stablecoin, were also hit by some institutions and individuals yesterday. First, the Ark female stock god believed that all ETFs would be passed, but not necessarily at the moment, which brought enthusiasm to the market. But then the US non-profit legal person organization believed that the SEC should reject all ETFs because ETFs may seriously affect the safety and losses of investors. This non-profit organization has a pivotal position in the US judicial and financial fields, and this statement may dispel the market's enthusiasm.
Soon after, U.S. lawmakers expressed concerns about PayPal's issuance of stablecoins, believing that there are still many gaps in the current U.S. regulation of stablecoins and that PayPal's centralized stablecoins may face many potential crises.
You see, the recent news is really a mixture of yin and yang, accompanying each other day and night.
In fact, for the current low liquidity of the market, any good news is just an interface for the main force to pull up the market, and the negative factors are responsible for accelerating the downward trend of the market. I said above that Bloomberg's chart analysts believe that the narrowing of prices may become an opportunity for the market to surge like in June, but given the current market sentiment and trader environment, the market cannot have so many participants. If the main force's own pull-up cannot drive market sentiment, it will become a stand-alone game. I think this is also what the main force does not want to see.
Trend Direction:
The market is a little awkward so far. We basically regard tonight's CPI data as a small impact. The rest depends on the impact of the US stock market on the crypto market. In the short term, there must be some support around 29,000 under the current sentiment. From the big trend, the market may still have a large range of fluctuations. Therefore, there is no problem with high-level shorts and low-level rebounds. The key is to find a good point. At the same time, based on past experience in data market conditions, the main force rarely controls the market based on data market conditions.
Trading straregy:
Regarding tonight's data, the US stock market is avoiding risks, which means that the volatility of the US stock market may be large, so the risk of opening a position is also very high. There are two options. One is to go short at a high level and set a large expectation as a defense, and the other is to go long at a low level. The specific point will be seen before the data comes out tonight. According to the market situation before the data, I will give a signal to open a position.
Spot:
There is nothing much to say. The low-liquidity market needs further activation. The hot tokens in the market are all operated by market makers, so be cautious. Newcomers are advised to wait and see with short positions, while experienced investors may be more cautious.
