Optimism and expectations in the cryptocurrency markets are growing, but this week the focus is on US inflation data.
Bitcoin (BTC) has been looking to reach new August highs as Wall Street opened on August 8 as upcoming US inflation data spurred sentiment.
BTC/USD hourly chart (Bitstamp). Source: Trading View
$25,000 Next Big BTC Resistance
Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it reached $24,246 on Bitstamp, the best reading since July 30.
At the time of this writing, the pair is within striking distance of its highest level since mid-June, while traders and analysts have been skimming the charts for signs of resistance.
Monitoring resource material indicators online, this was in the form of sellers at $25,000 and the 100-day moving average (MA) of Bitcoin.
“Bear market joy builds ahead of this week’s CPI report,” he tweeted in his latest update.
The accompanying chart showed the long signals that still characterize the daily chart, with the 100-day moving average near $25,650.
Order book data from the world’s largest exchange, Binance, fueled expectations for tensions in the space as liquidity sales surged by about $25,000.
1-day BTC/USD (Bitstamp) candlestick chart with 100-day MA. Source: Trading View
The display of risky assets topped the August 10 Consumer Price Index (CPI), and markets are waiting for US inflation to peak.
While in theory this would give crypto some breathing room, commentators have noted that the risk of a major stock market correction remains and crypto is still highly correlated.
The actions of Larry Fink, CEO of BlackRock, the world’s largest property management company, added to fears that risk assets are simply in the midst of an extended bear market recovery rally.
After partnering with U.S. exchange Coinbase last week, Fink sold a tranche of more than 44,000 BlackRock shares this month, his first major sale in the months leading up to the March 2020 COVID-19 crash. So concerns were centered about whether Fink knew something. that most did not know.
“I think the only thing that could push prices down is another big stock market pullback,” trader and analyst Max Reijer continued the same day.
“From the outside, it’s hard to imagine anything with as much selling pressure as there was at the two LUNA/3AC events.”
Reijer argued that with most expecting a move to the June lows or worse, this would no longer be the “maximum pain” of the market.
Ethereum Merge Can ‘Buy Rumors, Sell News’
Of the top 10 cryptocurrencies by market capitalization, not Bitcoin has shown the best daily or even weekly performance.
On the subject: US inflation peaked? 5 things to know about Bitcoin this week
The major tokens were led by Ether (ETH), Solana (SOL) and Polkadot (DOT), which provided 24-hour returns ranging from 5% to 8.5%.
ETH/USD hit $1,817 amid continued speculation about the merger and its implications on Binance, marking its highest level since June 9th.
For network analytics firm Glassnode, the good times could last until the actual event, which is expected to take place in September.
“There is hardly any trending trend to be found in the Bitcoin derivatives market. However, as far as Ethereum is concerned, traders are clearly holding a long-term bias, which is strongly expressed in September-focused options contracts,” he wrote about traders’ plans in the latest issue of his newsletter, The Week On-Chain, published in March. 14 was released on August 8th.
“After September, the futures and options markets are in backwardation, which suggests that traders expect the merger to buy rumors, sell news-style events, and position each other accordingly.”
ETH/USD 1-day candlestick chart (Binance). Source: Trading View
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