Bitcoin (BTC) tagged $58,000 around the July 12 Wall Street open as markets reacted to “sticky” United States inflation data.
Bitcoin joins stocks in positive PPI reaction
Data from Cointelegraph Markets Pro and TradingView showed BTC price strength improving as the Producer Price Index (PPI) print for June rose more than forecast.
Year-on-year PPI came in at 2.6% versus 2.3% expected, 0.1% higher than the month prior.
"On an unadjusted basis, the index for final demand rose 2.6 percent for the 12 months ended in June, the largest advance since moving up 2.7 percent for the 12 months ended March 2023," an accompanying press release from the US Bureau of Labor Statistics stated.
While the opposite of the previous day’s Consumer Price Index (CPI) numbers, BTC/USD avoided a downturn on the PPI release, modestly gaining in line with US stocks while dollar strength tumbled.
“So overall PPI is sticky on YoY basis if not higher due to higher prices & lack of supply,” popular trader Skew wrote in part of a response on X (formerly Twitter).
“Increasing energy, food and trade services prices is not a great look.”
Skew noted that barring energy, food and trade services, the Index was “basically flat” and less of a surprise to markets.
“Initial reaction was DXY & Yields up before lower, this tells me the market is transitioning into expecting a harsh reality when demand continues to buckle,” he concluded.
“NQ & ES likely recovering here with hedges coming off. End of day performance will be important.”
The US dollar index (DXY) was down 0.35% on the day at the time of writing, headed toward its lowest levels in over a month.
Continuing, Skew described the spot order book on largest global exchange Binance as “pretty healthy.”
“Although orderbooks are skew to bid, need to see this translate into market flows being bid,” he commented alongside a chart showing liquidity areas.
Analyst demands higher BTC price daily close
Others also demanded a stronger statement from BTC/USD to entertain the idea of a longer-term recovery.
Popular trader Rekt Capital highlighted $58,350 as the required minimum for the daily close.
“There's the rebound Bitcoin needed and price is now challenging that Lower High resistance again,” he told X followers about the PPI reaction alongside an explanatory chart.
“Bitcoin needs to Daily Close above $58350 (black) to break the Lower High and more importantly - position itself for a rally to $60600 (blue).”
Rekt Capital reiterated earlier coverage of BTC/USD attempting to break through a downward trendline — something met with rejection throughout recent days.
