In light of the US inflation data set for release on July 12 at 8:30 AM ET (12:30 PM UTC), it's captivating to assess the state of market assets like gold, along with Bitcoin. Here's our breakdown of the market conditions for the cryptocurrencies Bitcoin (BTC) and PAXG (Pax Gold).
Bitcoin (BTC)
The leading cryptocurrency is currently trading between the support level of $29,500 and the resistance level of $31,500. The possibility of an upward trend is still on the table, setting the bull's sights on the resistance zone between $31,600 and $32,600.
All eyes are now on the Consumer Price Index (CPI) set to be disclosed on July 12 at 8:30 AM ET (12:30 PM UTC). If the results are positive (meaning inflation drops more than 0.9%), it could provide a substantial boost for Bitcoin's ongoing growth. In contrast, a neutral or negative outcome (inflation dropping by 0.9% or less) could prompt a correction in the BTC price, potentially sending it toward the support zones of $28,700-$29,200 and $26,800-$28,000.
Despite this, the uptrend remains a preference as long as Bitcoin trades above the $25,000 level.
BTC chart on the H3 timeframe
Pax Gold (PAXG)
Since the start of the year, Bitcoin and PAXG were in sync, hitting new local highs and lows together. However, as of early June 2023, this correlation has almost disappeared. This might indicate that Bitcoin's rise was fueled largely by retail traders, given that institutional investors tend to focus on company shares and precious metals.
PAXG is currently trading around the support level between $1,865 and $1,900, a position it reached a month ago. If the dip deepens, gold might go down to the range of $1,800 to $1,834, which is an area of buyer interest.
Currently, the significant resistance level is set at $1,940. Further up, there is the zone of $1,955-$2,000 and the annual high at $2,052. However, testing this level seems somewhat unlikely for the time being.
The PAXG price fluctuation over the past month has only been about 4%. Likely, fundamental factors like the Consumer Price Index (CPI) or the interest rate won't greatly affect the PAXG rate.
PAXG chart on the H4 timeframe
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Disclaimer
Please note that the analysis provided above should not be considered a trading recommendation. These are solely the opinions of the GNcrypto editorial board regarding the market situation. Before opening any deals, we strongly advise conducting your own research and analysis.
Abbreviations
TF (Timeframe) — a chronological period equal to the time it takes to form one Japanese candle on the chart.
Horizontal channel (flat, sideways, range) — the movement of price between support and resistance levels, without going beyond the given range.
К — simplified designation of one thousand dollars of the asset price (for example, 23.4K - $23,400).
Gray range on the chart — a support zone.
Red range on the chart — a resistance zone.
Correlation — the tendency of prices of different cryptocurrencies to move in sync, often influenced by the dominance of one of the assets.
Initial materials
This analysis was informed by the following educational materials and articles from GNcrypto:
