Nischal Shetty, Founder, WazirX
“Ahead of the US CPI release, markets expected headline inflation to rise just 0.1% in July and core CPI by 0.2%. A hotter 0.3 – 0.4% core reading could have increased the likelihood of a September Fed rate hike, tightening financial conditions and pressuring crypto.
Instead, CPI matched expectations at 0.1%, while core CPI rose 0.2%, with annual rates at 3.4% and 2.5%, respectively. The contained inflation reading has reduced expectations for a September hike, supporting liquidity and risk appetite, which is a positive development for Bitcoin and the broader crypto market.
Wall Street has responded positively to the softer CPI environment. Overall US markets signal improving risk appetite, with the Nasdaq and S&P 500 advancing. The Dow remained broadly flat, and gold was stable. Oil declined 1.38%, potentially easing future inflation pressures.
BTC trades near $63,384, sitting around its $63,379 50-day SMA, while most shorter moving averages cluster above $64,000 and signal resistance; $63,200 – $63,400 is therefore an important support zone, with $64,000 – $64,550 being the immediate resistance. ETH near $1,876 shows support at around $1,863 – $1,870, while the $1,881 – $1,899 range creates overhead resistance.
With reduced expectations of a September Fed hike, the backdrop is supportive for crypto, although BTC and ETH need an additional catalyst for stronger momentum.
The liquidation breakdown shows $165.13 million in leveraged crypto positions liquidated over the past 24 hours, split between $78.01 million in longs and $87.11 million in shorts.
BTC futures traders may watch $63K – $62.5K as key downside levels, while $64.5K marks near-term resistance. A sustained move higher could bring the $65.5K – $66K zone into focus for market participants. For ETH futures, $1,870 remains a key level to monitor, with $1,850 – $1,815 forming lower support zones. On the upside, $1,925 is key resistance, followed by $1,960 – $2,000 if momentum strengthens.”
