Bitcoin Price to Rebound Soon? CPI Data and Ethereum ETF Approval in Focus

That’s going to hurt! Bitcoin just hit $55,000 – a level many analysts predicted.

But is this the bottom, or is there more downside to come? While some experts see a short-term bounce on the horizon, fueled by the Ethereum ETF and other factors, others warn against a mid-term buy. So, is Bitcoin ready to rally, or are we in for a summer slump?

Dive deeper to find out!

Prepping for a Market Rebound

As the crypto market braces for potential shifts, top analyst and 10x Research CEO Marcus Thielen predicts significant developments surrounding Ethereum ETFs and potential implications for Bitcoin. According to their recent report, all six applicants vying for spot Ethereum ETFs have submitted updated S-1 forms, a crucial step indicating imminent SEC approval.

This development coincides with expectations of a market rebound, fueled by anticipation of a softer US Consumer Price Index (CPI) report due Thursday.

Indicators to Note

In their Saturday report titled “Bitcoin: Preparing for Next Week,” 10x Research outlined scenarios for a possible market recovery. They noted oversold indicators signaling a potential short-term reversal, with two out of three reversal indicators now bullish. Despite Bitcoin’s recent challenges, the Relative Strength Index (RSI) stands at 38%, suggesting conditions are ripe for a brief upswing.

However, caution is advised, as failure to breach the $60,000-$62,000 range could trigger further downside pressures.

Historically, Bitcoin prices have weakened in August and September. A potential rate cut rally could push Bitcoin near $60,000, though sustaining this level may prove challenging. The bond market is currently pricing in two rate cuts for this year following disappointing employment data and a higher-than-expected unemployment rate of 4.1%.

Potential Catalysts

Bitcoin is currently oversold with two potential upside catalysts—the US CPI data and the SEC’s potential approval of the Ethereum ETF. These events might trigger short-covering and a brief rally, providing temporary relief in the current downtrend.

CPI Impact on Bitcoin

Over the past year, CPI prints have led to negative price moves for Bitcoin, while lower CPI prints have resulted in positive moves, which were invalidated last month. Despite a lower CPI reading of 3.3% in June, Bitcoin still fell from $68,000 following the release.

The report anticipates the next inflation print on July 11 will show a further deceleration to 3.2% or even 3.1%, presenting an opportunity for lower inflation figures and potentially bullish sentiment for Bitcoin.

Moreover, new investors are focusing on Ethereum’s ETF prospects, a potential threat to Bitcoin. The report underscores the delicate balance between market sentiment and technical indicators. As investors await regulatory decisions, particularly on Ethereum ETFs, Bitcoin’s trajectory hinges on broader market dynamics and regulatory clarity.

Read Also: Circulating Supply Of Stablecoins on Ethereum Surge, Supply Hits $78B

Are you ready to buy the dip? Prepare your investment strategy now!