Cryptocurrency Rollercoaster: Will Bitcoin Survive the June CPI Squeeze?

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    Bitcoin Drops From $123K to $116K in Hours

    Oh, but the drama continues! After the CPI decided to throw a tantrum, Bitcoin’s price couldn’t help but follow suit, retreating from its thrilling sky-high rally of $123,218 to a mere $116,500 in a matter of hours. This sweeping correction felt like a reality check after a wild party. 🥳💔

    This dizzying dive wiped out several over-leveraged positions, bringing the market back to a more—dare I say—neutral state? Just what every investor dreams of on a Wednesday, right?

    Probably de-risking ahead of the CPI print.

    — Kyledoops (@kyledoops)

    By midweek, Bitcoin was swirling around the $118,000 mark, showing glimmers of recovery, like a phoenix rising from the ashes. But remember, it’s still beneath that infamous $120,000 resistance. Is anyone else feeling the sweat? 💦

    This sell-off appears to be an intricate dance of macro uncertainty and pesky technical resistance, with traders de-risking, all while waiting for more inflation drama to unfold.

    Why Should You Worry About the CPI Data?

    Bitcoin’s become increasingly sensitive to macroeconomics, and honey, this latest reading screams trouble. High interest rates are itching to stick around, which historically doesn’t paint a rosy picture for risk assets like crypto. That’s right—demand could take a hit.

    Oh, and let’s not forget the juicy geopolitical tensions simmering, particularly in the Middle East. Analysts warn that disruptions in oil supply, particularly in the always-dramatic Strait of Hormuz, could be the culprits behind skyrocketing transportation and energy costs.

    These are the elements causing CPI jitters, so sit tight, folks! 😬

    In just 2 months, CPI inflation in the US has risen from 2.3% to 2.7%.

    Critics will blame tariffs, praisers will blame base effects.

    Regardless, the Fed will not cut interest rates this month.

    Follow us for real time analysis as this develops.

    — The Kobeissi Letter (@KobeissiLetter)

    Our dear friend, Trump’s tariff policies, are receiving their fair share of blame for these rising costs, too. Businesses, once valiant defenders shielding consumers from higher import duties, are now passing the buck. More like passing the whole freight truck! 🚚💨

    As a result, price pressures remain strong, and the Fed seems hesitant to ease its grip on the monetary policy. The drama continues.

    Which Price Levels Should You Watch Following the CPI Data Release?

    For the optimistic Bitcoin bulls, the magic zone to keep an eye on sits between $119,250 and $120,700. This region previously acted as a sell-side imbalance, suggesting that unfilled buy orders are lurking like hidden treasure waiting for discovery.

    A clean breakout above this cherished level could be the harbinger of fresh momentum, potentially propelling Bitcoin back towards—or even beyond!—its glorious $123,000 high. 🌟

    But hold your horses! If inflation data continues to rain on our parade and macro conditions remain tighter than a pair of skinny jeans, a deeper correction might be on the way. The fair value gap between $113,700 and $115,300, conveniently aligning with Bitcoin’s 200-day exponential moving average (EMA), could serve as a powerful support zone.

    If that doesn’t hold, well, brace yourself: Bitcoin might just retest the former all-time high close to $112,000. But honestly? That scenario seems less likely as of now. Keep your helmets on! 🎩

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2025-07-16 16:07