Key Points
- Coinbase analysts predict a positive shift in the crypto market after Bitcoin’s recent dip.
- The upcoming US CPI data release could significantly influence the future direction of Bitcoin and other cryptocurrencies.
Coinbase analysts have forecasted a potential recovery in the cryptocurrency market following the recent significant drop in Bitcoin’s value to $49k on August 5th.
The analysts suggest that this dip led to a massive liquidation of long positions, which could result in a ‘cleaner positioning’ that may positively impact the market.
Market Sentiment and Future Predictions
At the time of reporting, the sentiment in the futures market has shifted to a positive outlook. This change is indicated by the positive funding rates and is in line with Bitcoin’s recovery from $49K to the previous lows of $60K.
Analysts from QCP Capital echoed this bullish perspective in their weekend brief, emphasizing the significant and structural bullishness in Bitcoin.
Impact of US CPI Data
While the near-term price action for Bitcoin, Ethereum, and Solana could continue, Coinbase analysts highlight that macro factors will likely determine investors’ next move. They pointed out the upcoming release of the US CPI data on August 14th as a key factor to monitor.
In anticipation of this, traders and investors may use PPI (Producer Price Index) data to predict potential outcomes of the CPI. The PPI data, which tracks inflation from the producers’ perspective, will be released a day before the CPI data.
In conclusion, market volatility is expected from August 13th, which will likely set the direction for Bitcoin and other cryptocurrencies for the following week.
Over the weekend, Bitcoin traded above $60k, Ethereum was above $2500, and Solana traded above $150.
