- Bitcoin price flirts with $19,000 and breaks to the downside as traders position for US inflation data.
- BTC price could see another leg lower as the consensus is still very elevated.
- Expect to see a possible sharp decline of 8% towards $17,600 as dollar strength squeezes bulls out of their positions.
Bitcoin (BTC) price slips almost 1% in early morning trading as overall markets are calm but anxious about the US inflation figures coming out later today. The risk at hand could be an upside surprise, as seen with the job numbers last month which would see a persistently strong dollar get even stronger. Increased dollar strength could choke Bitcoin bulls and squeeze them out of their positions with technical support set to catch any nosedive moves.
BTC price set to close the week with 10% losses
Bitcoin price action takes a firm step back this week as bulls cannot trade away from the $19,000 marker. A squeeze can be seen with lower highs and the daily candles’ lows repeatedly breaking below $19,000. The risk this afternoon is that the US inflation print will surprise to the upside confirming the market view the US economy is still overheating after last Friday’s surprisingly robust job market data.
BTC price is at risk of tanking another 8% towards $18,000 with the S1 monthly pivot supporting at $17,600 and providing a ‘safety net’ for any falling knives. With the Relative Strength Index (RSI) still trading above 40 and thus providing ample room to break lower, a bearish move is even more highlighted. A new low for the past months could thus be in the making as on June 18, BTC price already had hit a multi-year low of $17,689.
BTC/USD Daily chart
On the other hand, should the US inflation figures come down significantly, expect to see a sharp drive higher in BTC price as the dollar weakens, as a result of traders paring back their bets on more rate hikes. Bitcoin price would still need to go a long way to reverse the trend, but $20,000 could be up for grabs with the 55-day Simple Moving Average as cap coming in on the topside.
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