Zinger Key Points
- Despite positive inflation data in the CPI report for June, major cryptocurrencies traded lower.
- The U.S. consumer prices rose by 0.2% in June, surpassing expectations.
- Analysts are observing a potential downward correction for Bitcoin, with concerns about a bearish lower high pattern.
Major cryptocurrencies traded lower on Wednesday evening despite the release of positive inflation data in the Consumer Price Index (CPI) report for June.
| Cryptocurrency | Gains +/- | Price (Recorded 9:30 p.m. EDT) |
| Bitcoin BTC/USD | -0.53% | $30,380 |
| Ethereum ETH/USD | -0.52% | $1872 |
| Dogecoin DOGE/USD | -0.62% | $0.064 |
What Happened: The U.S. consumer prices recorded a 0.2% increase in June, which was lower than expectations for a 0.3% rise. Core inflation, which excludes volatile food and energy prices came in at 4.8% as against consensus estimates of 5%.
Top Gainer (24 Hour)
| Cryptocurrency | Gains +/- | Price (Recorded 9:30 p.m. EDT) |
| Conflux | +7.05% | $0.199 |
| Compound | +6.30% | $71.97 |
| BitDAO | +4.83% | $0.4736 |
At the time of writing, the global crypto market capitalization stood at $1.18 trillion, a decrease of 0.69% over the last day.
U.S. stocks experienced a boost on Wednesday following optimistic data which suggests that the Federal Reserve has the ability to control inflation without negatively impacting the US economy.
As a result, the S&P 500 saw a considerable increase of 0.74%, while the Nasdaq Composite saw a notable surge of 1.15%.
See More: Best Crypto Day Trading Strategies
Analyst Notes: "Correction and still in the chop. Patience is required in the crypto markets but you’d rather bet on the case that we’ll be going up (whether or not we’ll have a correction first) than expecting to go to $12,000," wrote crypto trader Michael Van de Poppe.
Pseudonymous analyst Bluntz raised concerns about BTC’s recent performance. Bluntz observes a bearish lower-high pattern on the four-hour chart, indicating a potential downward correction for Bitcoin.
Bluntz believes that the current price action signals a loss of momentum for the crypto king, hinting at an ABC correction. This correction could drive Bitcoin’s value below the critical $28,000 mark.
"Savage four-hour forming here on BTC. I am updating my view a little bit and now expecting a deeper decline, a little bit further than just a simple $29,000 sweep, thinking more like (a move to the) $27,000 zone now."
On-chain analytics firm, Santiment, tweeted that both sharks and whales are closely monitoring the Bitcoin price range of $30,000 to $31,000, just like the rest of the traders. Interestingly, they seem to be accumulating stablecoins such as USDP and DAI at a rapid pace. This accumulation suggests a higher probability of significant cryptocurrency purchases in the near future.
Photo Courtesy: Shutterstock.com
Read Next: Jim Cramer Advises Against Using Binance, Provokes Strong Reactions From Twitter Users
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