Bitcoin Holds Steady at $76,000 Ahead of US CPI Report
Bitcoin has retreated to a key support level of $76,000 in anticipation of this week's US CPI report. The strong US NFP report and surge in oil prices have led to increased expectations for Fed rate hikes, with traders now pricing in a 67% chance of a hike at the upcoming meeting.
Fed member Waller has stated that he would consider a rate hike in September if the monthly core reading surprised to the upside. However, this was before the latest surge in oil prices, which has further increased expectations for a rate hike.
Traders expect an in-line CPI report to have little impact on market expectations, while a soft Core CPI could provide a short-term boost to Bitcoin. An upside surprise, on the other hand, may exacerbate risk-off sentiment and trigger a selloff as the market prices in even more aggressive rate hikes.
On the technical front, Bitcoin has rejected the 82,500 resistance level and pulled back to the key support at $76,000. Buyers are expected to step in around this level, while sellers will look for a break below the support to increase bearish bets.