TechFlow reports that on July 6, when Bitcoin was trading at $56,746, 10x Research recommended taking a tactical long position, anticipating that this week's CPI data could push Bitcoin toward $60,000. Yesterday, ahead of the CPI release, Bitcoin rose to $59,350 due to short covering, in line with expectations.
Its bullish stance at the end of 2022 and beginning of 2023 had sparked confusion, but Bitcoin has since performed positively as inflation declined from nearly 8% to around 3%.
This week’s CPI report is more complex, as expectations of declining inflation have already triggered a 5% short-covering rally. Data releases and event-driven trading require deep understanding of shifting market expectations and positioning. Significant volatility will depend on surprises in the data and traders’ positioning.
