Bitcoin Predicted to Rebound if US Inflation is Lower Than 3%

Bittime - Upcoming US inflation data is expected to influence Bitcoin price significantly. Matrixport also predicts that Bitcoin may experience a recovery in the near future.

Inflation and its Effect on Bitcoin Prices

Next week, the United States is scheduled to release inflation data, which is one of the main economic indicators that influence investment decisions, especially in risky assets such as Bitcoin. 

According to Matrixport, if inflation is lower than 3%, this can encourage positive sentiment in the market and trigger a recovery in Bitcoin prices which are currently in an oversold state.

Previously, Bitcoin often rebounded after experiencing oversold conditions. An oversold condition occurs when the RSI indicator is below 30%, which indicates that an asset has been oversold and may be undervalued. 

RSI below 30% on Bitcoin doesn't happen often, but when it does, it is usually followed by a trend reversal or price recovery.

Read Also: Bitcoin Correction, RSI and MACD Indicators Show Potential to Buy Bitcoin?

Will Bitcoin Price Rebound?

It cannot be denied that Bitcoin and other crypto assets are strongly influenced by global macroeconomic factors. Uncertainty related to economic growth, monetary policy, and labor market conditions are some of the factors that influence Bitcoin volatility. 

In August, trading volume and liquidity in the crypto market are expected to decline, which may result in reduced investment returns. This was further reinforced by the 18% decline in Bitcoin prices last Monday, which confirmed weak market expectations.

However, despite concerns about further declines, some technical indicators such as RSI levels are similar to June 2024, where Bitcoin's RSI was also below 30%, providing an opportunity to enter the market before the price increase occurs.

Stablecoin Outflows 

Additionally, reports Matrixport also said that last week saw outflows from Circle stablecoins, which could be taken as a sign that investors are selling riskier assets and seeking refuge in more stable stablecoins. 

However, this week saw renewed inflows into the stablecoin, which may be an indication that investors are starting to engage in bottom fishing, or buying assets when prices are at their lowest.

Read Also: Bitcoin Market Dominance Reaches 55.7%, New Record in the Last 3 Years!

How to Buy Crypto with Bittime

You can buy and sell crypto assets in an easy and safe way via Bittime. over is one of the best crypto applications in Indonesia which is officially registered with Bappebti. 

To be able to buy crypto assets on Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application. 

Monitor graphic movement price Bitcoin (BTC), Ethereum (ETH), Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.