2 years ago
Summary:
- Bitcoin has gained worth from astir $21.3k during the play adjacent to a section precocious of $22.5k.
- Bitcoin is trading straight beneath the captious 200-week moving average, which has marked marketplace bottoms successful past carnivore markets.
- BTC gaining successful the crypto markets comes astatine a clip erstwhile the United States posted its highest ostentation successful 40 years astatine 9.1%.
- New Zealand has besides announced record-breaking inflation, with the EU, UK, Canada, and Japan expected to denote their CPI this week.
Bitcoin has had an eventful 24 hours, having breached the $22k absorption level aft the play adjacent and looking to reclaim the all-important 200-weekly moving mean astatine the $22,500 terms level.
The second play moving mean has antecedently marked carnivore marketplace bottoms, and Bitcoin flipping it from absorption to enactment would beryllium monumental successful turning crypto-trader sentiment from one of fear to optimism.
What the Daily BTC/USDT Chart Says.
A little look astatine the regular BTC/USDT illustration beneath reveals that Bitcoin remains successful bearish territory, trading beneath the 200-week (red), 50-day (white), 100-day (yellow), and 200-day (green) moving averages. BTC is presently battling the 200-week moving mean and 50-day moving mean arsenic absorption levels.
Successful reclamation of the second 2 MA’s could awesome further caller maturation to the 100-day moving mean astir the $28k terms area.
Bitcoin Turns Bullish Amidst Record Breaking Inflation successful the US and NZ.
Bitcoin’s fortunes turning for the amended successful the crypto markets travel little than 1 week aft the United States’ ostentation deed a 40-year precocious of 9.1%. In addition, New Zealand conscionable announced record-breaking ostentation of 7.3% marking its highest level successful 32 years.
EU, Canada, UK, Japan to Announce CPI Data this Week.
Furthermore, the EU, United Kingdom, Canada, and Japan are besides expected to release their yearly ostentation information this week. Given the ostentation information from the US and New Zealand, it is highly probable that they excessively volition station record-breaking yearly inflation.
Is Bitcoin Finally a Hedge Against Inflation, oregon Was it a Short Squeeze?
With the supra accusation and events, 1 tin rapidly reason that Bitcoin posting gains amidst record-breaking CPI information could mean that investors are yet warming up to BTC arsenic a hedge against inflation.
However, the CEO of CryptoQuant, Ki Young Ju, identified past week that a Bitcoin short-squeeze could beryllium successful the pipeline fixed the inclination of precocious shorter to go progressively assured arsenic BTC loses value. He shared his investigation of the abbreviated compression done the two-part Twitter thread below.
To beryllium clear, I didn't accidental that the parabolic bull tally is astir to start.
I'm conscionable saying it seems adjacent to the bottom, and it's clip to hold until this abbreviated compression lawsuit happens. It could beryllium for similar a fewer months oregon years for the adjacent parabolic bull run, we ne'er know.
— Ki Young Ju (@ki_young_ju) July 14, 2022
Therefore, caution is advised going agelong connected Bitcoin, fixed that the existent terms enactment is perchance a abbreviated squeeze. BTC’s correlation to planetary macro-economic events could resume soon after, and bearish sentiment could return.
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