Bitcoin

Bitcoin spiked to new one-week highs on July 11 as United States macroeconomic data delivered a bullish surprise.
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 <img src="https://s3.cointelegraph.com/uploads/2024-07/2ca11c87-fefe-4adc-bc91-d26f51dc0ff4.png" alt="Bitcoin price CPI gains last just 1 hour as Mt. Gox sell-off fears linger" title="">
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 BTC/USD 15-minute chart. Source: TradingView
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<h2 data-ct-non-breakable="true" id="bitcoin-quickly-erases-a-trip-to-one-week-highs">Bitcoin quickly erases a trip to one-week highs</h2>
Data from <a href="https://subscription.cointelegraph.com/?_gl=1*7499wx*_ga*MTQ0MzQ0NzI4Ny4xNzE2MzY1NTA0*_ga_53R24TEEB1*MTcxNjM2NTUwNC4xLjEuMTcxNjM2Njg2MC4wLjAuMA..">Cointelegraph Markets Pro</a> and <a href="https://www.tradingview.com/symbols/BTCUSD/?exchange=BINANCE" target="_blank" rel="noopener nofollow">TradingView</a> showed a rapid but brief Bitcoin (<a href="https://cointelegraph.com/bitcoin-price">BTC</a>)&nbsp;price climb to $59,516 on Bitstamp.
This followed the June print of the US Consumer Price Index (CPI), which showed inflation slowing beyond expectations.
Year-on-year and month-on-month CPI both came in 0.1% lower than forecast, leading to a positive reaction across both crypto and US stock markets.
“The all items index rose 3.0 percent for the 12 months ending June, a smaller increase than the 3.3-percent increase for the 12 months ending May,” an accompanying press release from the US Bureau of Labor Statistics <a href="https://www.bls.gov/news.release/cpi.nr0.htm" target="_blank" rel="noopener nofollow">confirmed</a>. 
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 “The all items less food and energy index rose 3.3 percent over the last 12 months and was the smallest 12-month increase in that index since April 2021.”
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 <img src="https://s3.cointelegraph.com/uploads/2024-07/77eae10d-663d-4a38-a1ef-c3781bae04ce.png" alt="Bitcoin price CPI gains last just 1 hour as Mt. Gox sell-off fears linger" title="">
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 US CPI 12-month % change. Source: Bureau of Labor Statistics
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Nonetheless, the initial gains proved shortlived, with BTC/USD quickly erasing the $1,000 it had initially added.
“Inflation coming down faster than expected. Local higher high for Bitcoin in response,” popular trader Jelle <a href="https://x.com/CryptoJelleNL/status/1811378277145043280" target="_blank" rel="noopener nofollow">summarized</a> on X. 
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 “Time to let the dust settle, but safe to say it’s much stronger than it was at the start of the month. Reclaim $60,000 and things will look much better.”
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 <img src="https://s3.cointelegraph.com/uploads/2024-07/9f9666de-f258-4bd7-afce-f35f9fb5b5f0.png" alt="Bitcoin price CPI gains last just 1 hour as Mt. Gox sell-off fears linger" title="">
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 BTC/USD chart. Source: Jelle/X
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$60,000 remained the key level on the radar for market participants, with fellow trader Wolf identifying it as a target for a resistance flip.
“The 60-61.6k range is where the strongest resistance lies, due to horizontal and weekly 21EMA barriers,” he <a href="https://x.com/IamCryptoWolf/status/1811351267827921253" target="_blank" rel="noopener nofollow">told</a> X followers, referring to the 21-week exponential moving average at $60,900.
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 “If this level is cleared, the bulls will regain control.”
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 <img src="https://s3.cointelegraph.com/uploads/2024-07/7b25df1d-7fee-414b-8963-08d2d71e30cf.png" alt="Bitcoin price CPI gains last just 1 hour as Mt. Gox sell-off fears linger" title="">
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 BTC/USD chart. Source: Wolf/X
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As Cointelegraph reported, other important lines in the sand within the Bitcoin bull market include the <a href="https://cointelegraph.com/news/bitcoin-price-loses-200-day-trendline-first-time-in-10-months">200-day moving average</a> and short-term holder cost basis, the latter <a href="https://cointelegraph.com/news/watch-btc-price-support-levels-bitcoin-tumbles-64k">still high above spot price</a> at $64,088, per <a href="https://www.lookintobitcoin.com/charts/short-term-holder-realized-price/" target="_blank" rel="noopener nofollow">data</a> from onchain analytics resource Look Into Bitcoin.
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 <img src="https://s3.cointelegraph.com/uploads/2024-07/af0d5c5e-a516-435a-b953-87789ef698aa.png" alt="Bitcoin price CPI gains last just 1 hour as Mt. Gox sell-off fears linger" title="">
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 Bitcoin short-term holder realized price. Source: Look Into Bitcoin
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Short-term holders, the name given to the more speculative end of the Bitcoin investor cohort, held <a href="https://cointelegraph.com/news/bitcoin-speculators-hodl-2-8-m-btc-worst-performing-price-cycle">up to 2.8 million BTC at a loss</a> when the price hit four-month lows of $53,500 last week.&nbsp;
<h2 id="btc-price-sentiment-beholden-to-mt-gox-pressure">BTC price sentiment beholden to Mt. Gox pressure</h2>
The mood overall, meanwhile, remained cautious as markets anticipated the start of the&nbsp;<a href="https://cointelegraph.com/news/mt-gox-repayment-crypto-market-volatility">distribution of coins</a> belonging to creditors of defunct exchange Mt. Gox.
Related: <a href="https://cointelegraph.com/news/bitcoin-traders-profit-margins-repeat-2022-bear-market-new-research">Bitcoin traders’ profit margins repeat 2022 bear market — New research</a>
Crypto commentator Zen <a href="https://x.com/Zen_Trades1/status/1811253372621877711/photo/1" target="_blank" rel="noopener nofollow">suggested</a> that a BTC price “nuke” could still result as funds hit exchanges, with two days required for the market to rebalance itself.
That view also held beyond trading circles, with Jamie Coutts, chief crypto analyst at financial services firm Real Vision, arguing that it would ultimately be a cathartic process.
“While painful in the short term, the distributions of the Mt.Gox reserve and government sales remove the annoying supply overhang, helping distribute coins to a wider array of holders, thereby growing the network and leaving Bitcoin even better off than before,” he <a href="https://x.com/Jamie1Coutts/status/1811195415502676283" target="_blank" rel="noopener nofollow">wrote</a> on X on July 10.
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 <img src="https://s3.cointelegraph.com/uploads/2024-07/4c41917d-9ac0-4caa-94b8-e37f69753c39.png" alt="Bitcoin price CPI gains last just 1 hour as Mt. Gox sell-off fears linger" title="">
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 Mt. Gox BTC reserves vs. BTC/USD. Source: Jamie Coutts/X
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Coutts referenced ongoing BTC sales from the German government, which Cointelegraph <a href="https://cointelegraph.com/news/german-government-354m-btc-sell-off">continues to report on</a>.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Bitcoin price CPI gains last just 1 hour as Mt. Gox sell-off fears linger

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Cointelegraph

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