July CPI Comes in Cool at 2.7%: What This Means for the Price of Bitcoin

Bitcoin is facing a strong sell wall around the $120,000 level. The latest attempt to break higher was rejected, resulting in a 3% retrace to about $118,525 on Tuesday. This short-term weakness is being highlighted by a “death cross” on the four-hour chart and a bearish divergence on the daily RSI, both hinting at a possible correction.

If the price closes below its mid-term rising trendline, it could be pushed back toward the support level around $117,000. However, the macro bullish trend remains strong, as shown by the daily MACD indicator, which has recently flashed a buy signal.

Nevertheless, the macro bullish trend remains strong, as flashed by the daily MACD indicator. Notably, the daily MACD indicator saw its MACD line cross above the Signal line amid rising bullish histograms.

The United States Bureau of Labor Statistics has released July’s Consumer Price Index (CPI) data on Tuesday, August 12. According to aggregate data analysis from , July’s CPI data came in lower than anticipated 2.7% YoY, while economists anticipated the CPI to hit 2.8% Y/Y.

As we covered.

According to data from Kalshi, a CFTC-regulated prediction market platform, the majority of traders, accounting for 74%, expected Tuesday’s CPI to be at 2.7%. The inflation in July was elevated by the ongoing tariff wars, especially between the United States and China.

Bitcoin price has experienced heightened volatility in the past CPI announcement. According to an analysis by crypto analyst Ali Martinez, Bitcoin price has often rallied after the CPI data release, if the flagship coin has dropped before the official announcement, and vice versa.

Bitcoin price remains heavily influenced by the macro fundamentals, despite the short-term volatility caused by high-impact news. The palpable aggressive accumulation of Bitcoin by institutional investors has worsened the supply vs demand shock, which had already triggered macro bullish sentiment.

According to market data analysis from , the supply of BTC on centralized exchanges has declined by 7k in the last 30 days to hover around a multi-year low of about 2.24 million coins.

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