Market specialist cautions that Bitcoin may struggle to surpass current resistance level

Bitcoin, or BTC, is currently striving to solidify its position above the $60,000 major psychological mark, sparking renewed enthusiasm among investors following encouraging CPI figures. Notwithstanding this positivity, a seasoned trading analyst suggests that BTC may encounter obstacles during shorter time intervals, which could lead to an immediate trend reversal.

The analyst in question is CrypNuevo, active on platform X, renowned for his precision in trading and predictions on Bitcoin’s price trajectory. From his analysis, BTC presents a notable wick on the one-hour chart, indicating a resistance area.

Should the predictions materialize, this wick may act as a magnet for liquidity, propelling it upwards. In such a scenario, CryptoNuevo anticipates Bitcoin could reach $62,000, potentially setting up a bull trap just beyond the resistance zone.

Nevertheless, the expert identifies a potential block in the $61,800 to $62,200 range that aligns with the 50-day exponential moving average (1D 50EMA). Given this key barrier, traders might consider shorting Bitcoin at these levels, which could result in a price pullback.

Failure to surpass this critical point might cause BTC to retract towards the $58,000 territory before attempting another rise. Notably, the analyst indicates his intent to seek short positions in this context.

Analyzing Bitcoin’s Resistance in Light of Recent CPI Data Release

The recently disclosed U.S. Core Consumer Price Index (CPI) matched expectations, while the general CPI report was, encouragingly, a tad below projections. Specifically, year-on-year inflation was gauged at 2.9%, a sliver below the forecasted 3.0%. This data was acquired from Finbold shortly after its official issuance on August 14.

Investors and market analysts are now interpreting this information with a bullish outlook, anticipating positive market activity in the upcoming weeks. This is partly due to the Federal Reserve’s use of CPI in tandem with unemployment figures as main indicators for potential rate reductions—a move which many speculate will initiate a bullish upswing.

Interestingly, unemployment rates have surpassed expectations, reaching a three-year peak at 4.3%, alongside a deceleration in inflation rates.

As a result, despite the looming possibility of a near-term corrective dip, the overall market sentiment leans toward expecting favorable price developments shortly. Nonetheless, it is wise to tread with caution and avoid overly leveraged positions, as cryptocurrency markets are known for their volatility and unpredictability.

Disclaimer: The content provided herein is not to be construed as investment advice. Investing carries speculative risk, and one must be aware that it is possible to lose all invested capital.