CPI Data Pushes Bitcoin Under $60K – Why a Surge to $70K Is Still Possible

Bitcoin’s price recently fell below the $60,000 mark following the release of the US Consumer Price Index (CPI) data. The CPI indicated a month-on-month increase of 0.2% and a year-on-year rise of 2.9% for July, closely aligning with market expectations. Core CPI also met expectations, showing a 3.2% year-on-year increase.

With inflation cooling off and US interest rates remaining at multi-decade highs, analysts believe the Federal Reserve may soon start cutting rates. This potential shift in monetary policy could create a favorable environment for risk assets like Bitcoin, paving the way for a price rebound.

Despite the current dip, Bitcoin remains poised for a possible recovery, particularly if the Fed’s rate cuts materialize. Additionally, recent data suggests that post-halving miner capitulation has ended, and with the Bitcoin network’s hashrate reaching a new high, miner sentiment appears strong. This shift could reduce selling pressure and support a move towards $70,000.

Technical indicators also point towards a potential rebound. The MACD indicator has crossed into positive territory, historically signaling an imminent price rise, while the 14-day RSI has bounced back from oversold conditions, further suggesting a near-term recovery.

With the right conditions, Bitcoin could retest its July highs near $72,000, setting the stage for a significant price surge in the coming weeks.