I wanted to prepare you for what may happen today or in the coming weeks if the data we get today is not good. It’s not looking too good right now, but we’re going to break that down. We’re also going to go over the charts and, of course, the overall cryptocurrency market.
Looking at the Crypto Bubbles today, we can see that the market is beginning to price in poor CPI data. That is the information we have today. We should be getting it within the next few hours. The market is definitely preparing for bad data. We got most of the market down significantly. The Luna Classic is down 10%. We were up and that was the perfect opportunity to short the market.
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Moving on to today’s news, the White House warns that the CPI inflation number will be elevated, so we’re already getting warnings preparing the market and that is why the market is currently going down. Of course, in the overall bear trend, the macroeconomic level landscape is looking horrible. But again, we’ve got this data coming out.
I spoke about the three important dates that we have this month, and this was the first one coming up. So, ahead of the release of the CPI data that is driving the news, White House officials are preparing the country for a hot inflation rate. Independent economists predict that annual headline inflation will rise to 8.8% in June, up from 8.6% in May. So write that down right now when the Bureau of Labor Statistics releases its CPI report on Wednesday at 8:30 a.m. ET.
While Biden officials were careful not to predict June’s CPI print would be high water mark inflation, they noted that average gas prices have been declining since June. This is the silver lining that we’re having here.
Energy prices have fallen significantly from the prices included in the June CPI report, which the director of the National Economic Council wrote in a public memo he recently released, but the June CPI data will largely not reflect the substantial declines in gas prices we’ve seen since the middle of June. So the silver lining here is that most of the time, the CPI data to come out today will be higher than last month, which will be bad for the overall market.
Of course, that will also have a large effect on bitcoin’s price and then the overall cryptocurrency price, but the silver lining is that prices are coming down, which could mean that inflation is starting to peak and also that next month’s CPI data may be lower, which of course would be good for the market, but with that said, let’s see what happened in June’s CPI data release.
So if we go back here, this is exactly when June’s CPI data came out here on the 10th of June, and we can see from that date that we had a huge decline of 41%. We’ve actually stayed there for 31 days and we have shown no sign of actually coming out of this yet, so with this new CPI data coming out today, if we have a similar drop, that’s going to put us square at $11,500, which is something that is completely possible. We’ve been speaking about this. There was a lot of support around $14,000 and then around $10,000 to $11,000.
So these are the lines that I’ve been watching here on the charts for the last few weeks. It’s definitely possible now. With that said, if the data comes out better than expected, which is still a reality. It’s still possible. It’s unlikely but still possible. You can see we have been putting in these higher highs, higher lows, higher highs. We haven’t yet broken this higher low, so if we were to put in a low here and continue upwards, that could be considered bullish. It’s totally possible if the data is better than expected, we could see a rally here, but that’s the less likely scenario. You have the scenario of this dropping all the way down to $11,000 or a less likely scenario of it being bullish again.
If we do head over to the overall market, we can also see a big decline overall of 2.3%. Most coins are now down on the 24 hour, the seven day, and, of course, the 90 day. It’s not looking good at all, so things are looking relatively scary right now. We’re going to have to wait to see what this data tells us today. Let me know down in the comment section what you plan to do. Are you going to be selling your crypto? Are you simply going to be stacking your sats or your long-term holds?
For me personally, if we were to drop to $11,000, $11,500, I’m going to be buying more bitcoin and simply holding on for the long term dollar average and spending each and every day learning and researching and growing my knowledge in this space because I think that that is the best thing that I can be doing right now.
[This article is a transcription of a video made by Сonor Kenny]
Original video: https://youtu.be/6-FA6EkLYpo]