Bitcoin bulls are trying hard to set their foot above the $24,000, although on the other hand financial analyst Justin Bennett said that this week’s release of inflation data will be the biggest test of the year by far for the cryptocurrency markets.
The trader said in a new video that statistics from the Consumer Price Index (CPI) and Producer Price Index (PPI) might shake the macro environment and have a big impact on cryptocurrency.
Both CPI and PPI will be released back-to-back the next week, so the stock market, as well as the cryptocurrency market, will want to pay attention to these developments.
The CPI and PPI will offer us a sense of the type of inflation the economy is now experiencing. Since it controls how quickly the Fed and other central banks raise interest rates, inflation is undoubtedly a hot topic at the moment.
The strain on the economy and financial markets as a whole is increasing in direct proportion to how quickly and aggressively these central banks are raising interest rates. The S&P 500 has been tracking Bitcoin, so the entire financial market will be watching both of these occurrences next week.
Watch these levels for BTC
According to the analyst, in order to turn this area back into support, Bitcoin (BTC) needs to close on a daily basis above the $23,000 mark. BTC is currently trading at $23,880 as of this writing.
The next price target is going to be $23,450 if BTC closes above the $23,000 barrier. The market is currently fighting to rise above that level. In reality, it’s not a coincidence that today’s high is $23,476. Again, the resistance level to watch is $23,450. The next significant challenge for Bitcoin is going to be right around $24,200, so keep an eye on that if it does manage to break higher.
“If the market can really start to rally next month into the rest of August, one level to keep an eye on here is going to be mid $25,000. I’ve talked about this before but mid $25,000 is going to be an area to watch.”