Major cryptocurrencies saw a shift in their early morning gains as the inflation data came in lower than expected, resulting in a ‘buy the rumor, sell the news’ scenario.
Bitcoin briefly surged above $59,000 after the Consumer Price Index slowed down in June. However, profit-taking by investors caused the leading cryptocurrency to stabilize around $57,000.
Ethereum followed a similar pattern, rising to nearly $3,200 before retracing back to the early $3,100s.
The Open Interest in Bitcoin futures increased by 1.36% in the last 24 hours to $29.18 billion. This rise, combined with sideways price movement, is typically seen as a positive signal for a potential upside breakout.
In a reversal of the week-long trend, the number of traders opening long bets on Bitcoin exceeded those opening bearish short bets.
The Cryptocurrency Fear & Greed Index indicated “Extreme Fear,” suggesting that the market may be nearing its bottom.
Top gainers in the last 24 hours included MANTRA (OM), Near Protocol (NEAR), and Arweave (AR).
The global cryptocurrency market cap currently stands at $2.12 trillion after a slight contraction of 0.36% in the past 24 hours.
Stocks also pulled back from record highs, with the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average experiencing varying movements.
Positive inflation data raised the likelihood of a Federal Reserve rate cut, leading investors to shift away from big tech winners like NVIDIA Corp. (NVDA).
Popular cryptocurrency trader Kevin identified a potential “textbook bear flag” for Bitcoin, with a possible target of $50,000.
Another prominent trader, Rekt Capital, emphasized the importance of a daily close above $58,350 for Bitcoin to trigger a rally towards $60,600.
As of now, Bitcoin faces strong resistance at the mentioned levels.