Bitcoin Stalls Below $80K as Traders Await Inflation Report
Bitcoin's price has stalled below $80,000 as traders await Thursday's inflation report. The cryptocurrency is currently trading at around $78,200, stuck between support levels of $77,600-$77,900 and resistance at $80,000-$82,000.
The August Consumer Price Index (CPI) report is expected to be released on September 11, with a forecasted headline inflation rate of 3.4%. A soft reading could revive the case for a Federal Reserve rate cut and potentially push Bitcoin's price towards $82,000, while a hotter-than-expected number may send it back to test $77,000.
Bitfinex analysts note that more than 71% of Bitcoin's circulating supply is now in profit, approaching the 74.7% historical average that has marked the transition from bear to bull markets in past cycles. However, this signal can be seen as both bullish and bearish, as it indicates that holders are sitting on gains they may choose to lock in ahead of the market reaching resistance.
The setup is further complicated by upcoming events, including the Federal Reserve's FOMC meeting and a Bank of Japan decision on September 16. Additionally, Brent crude oil prices have surpassed $100 a barrel, and the yen has strengthened into the BOJ meeting, contributing to Bitcoin's price being influenced by broader macroeconomic factors.