According to Santiment, Bitcoin's social sentiment is seeing an unprecedented level of optimism going into the second half of July as the community awaits key inflation data. The on-chain analytics firm suggested that an ideal setup might be for the crowd to remain skeptical while prices rise with little or no resistance.
📊 #Bitcoin's social sentiment is seeing an unprecedented level of optimism this week as we head into the second half of July and the #Fed's next decision. An ideal setup would be the crowd remaining skeptical as prices climb with little resistance. https://t.co/OM52RZ9eDP pic.twitter.com/3EtAVYE8hs— Santiment (@santimentfeed) July 11, 2022
Few crypto analysts remain optimistic about Bitcoin’s price action ahead of the release of the CPI data.
#Bitcoin | The TD Sequential presents a buy signal on $BTC four-hour chart. If the 100-hour MA at $20,400 holds, #BTC could rebound towards the 200-hour MA at $21,900.— Ali Martinez (@ali_charts) July 11, 2022
Failing to hold above 100-hour MA can trigger a downswing to $19,900. pic.twitter.com/WPuDmSDsaL
For cryptoanalyst Ali Martinez, "The TD Sequential presents a buy signal on the BTC four-hour chart. If the 100-hour MA at $20,400 holds, BTC could rebound towards the 200-hour MA at $21,900. Failing to hold above 100-hour MA can trigger a downswing to $19,900."
#bitcoin higher highs and higher lows...— Lark Davis (@TheCryptoLark) July 10, 2022
Potential start to an uptrend?
Don't get too excited about anything until we get the CPI data on the 13th. Sadly, macro still dictates the #crypto market! pic.twitter.com/5AaxExFZ25
Lark Davis, an analyst tweeted "bitcoin higher highs and higher lows... Potential start to an uptrend? Don't get too excited about anything until we get the CPI data on the 13th. Sadly, macro still dictates the crypto market!"
The expected U.S. consumer price index report for July 13 will be closely watched by traders this week. U.S. inflation is predicted to rise to 9%, a new four-decade high, supporting the Federal Reserve's case for a significant interest-rate increase in July.
Monday saw a decline in both European markets and U.S. equity futures as investors awaited the crucial second-quarter earnings season for clues about how businesses are coping with the inflationary maelstrom. Price pressures, a wave of monetary tightening and a faltering global economy continue to shadow the markets.
Crypto market price action
The cautious start to the week in global markets drew the attention of Bitcoin, which is set to mark the fourth day of losses but maintained a price over $20,000. BTC was trading at $20,371 at the time of writing, down 3.81% from the previous day.
After losing 3.59% of its value in the early hours of Monday, Ethereum has dropped to below $1,200. At the time of publication, several cryptocurrencies were losing value. Dogecoin, Tron and Solana all had declines of 4.16%, 3.74% and 5.05%, respectively, over the last 24 hours.