Global financial markets again show a downward trend on June 10 after the publication of the consumer price index (CPI). came to a staggering 8.6% annual growth, the highest since 1981.
A hotter-than-expected CPI print saw the $30,000 support collapse and Bitcoin (BTC) price sell off to a daily low of $28,852 before buyers managed to push the price back above $29,000.
Here’s what a few market analysts have to say about Bitcoin’s future outlook as there appears to be little relief on the inflation front and the Federal Reserve remains determined to raise interest rates.
The strength of the dollar puts a lot of pressure on risky assets
Il Capo of Crypto, who published the following charts note that “after the CPI results, #DXY continues to rise and #SPX continues to free fall.”
Market analyst Kevin Swanson also said the Fed’s failure to curb inflation is likely to lead to price volatility next year.
Instant recovery is unlikely.
— Kevin Svenson (@KevinSvenson_) June 10, 2022
There is potential for a pullback below $28,000.
If the price of BTC continues to decline, the crypto trader and Twitter user under the pseudonym Altcoin Sherpa He speaks trading below $28,000 is possible.
Altcoin Sherpa said:
“$BTC: EMAs look better than ever on the 4-hour chart, but the overall market structure with high time frames remains bearish. In fact, I don’t do anything active, I just observe. It seems clear that $28K> will be next if this current area is lost.
Bitcoin Price Drops Below $29.5K After 40-Year Unexpected Inflation in the US
BTC Needs $30k Return to Prevent Further Fall
An insight into what it would take to avoid a pullback to support at $28,000 was provided by market analyst and Twitter user alias CrediBULL Crypto, who published the next chart shows a “failed” pullback from the $30,000 area. The analyst suggested that it “was a point where we needed to see things through.”
CrediBULL Crypto said:
“On support, but it’s already been tested 4 times, so it’s probably under $28K. If we can get back above $30,000, then $28,000 can be avoided.”
The total market capitalization of the cryptocurrency is currently $1.192 trillion, and the Bitcoin dominance rate is 46.6%.
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Credit : cointelegraph.com