Bitcoin's Consolidation Phase Far from Over, Analyst Warns

The Producer Price Index (PPI) data release in the US had a significant impact on Bitcoin's price. The data showed an acceleration on an annual basis, increasing the likelihood of a Fed interest rate hike in September.

Before the data release, the probability of a September rate hike was 62.2%, but after the release, it rose to 70%. This news led to selling pressure on Bitcoin, which fell to $76,000.

Garrett Jin, a Chinese cryptocurrency whale, analyzed the situation and stated that Bitcoin's current consolidation phase is far from over. He noted that the market hasn't yet entered a strong uptrend, as evidenced by Bitcoin's failure to maintain its price above $82,300.

Jin emphasized that breaking above $82,500 is not enough for an upward trend; instead, it needs to maintain its position above this level and see stronger buying from the spot market. If this happens, his target would be the $83,000-$86,000 range, which he warns could be a significant resistance zone.

Jin also identified the first significant support zone on the downside as $76,000, $77,000, warning that if there's no upward breakout, BTC could fall to this region. If this level is broken by significant selling pressure, Bitcoin could move to $74,000-$75,000 and then to the more important demand zone of $72,000-$72,500.