Bitcoin News Today: July CPI to Drive Market Volatility, Bitcoin Faces Key Levels Amid Bi-Directional Risk

Bitunix analysts have highlighted the bi-directional risk stemming from the upcoming U.S. July CPI data release, emphasizing its potential to trigger sharp and opposing market reactions across stocks, forex, and bonds, regardless of whether the numbers come in higher or lower than expected [1]. The market is currently pricing in a monthly CPI increase of 0.2% and an annual rise of 2.8%, with core CPI anticipated to rise by 0.3% month-on-month and 3.0% year-on-year [1]. Such volatility could have a ripple effect on risk assets in the short term, making the event a critical focus for traders.

For Bitcoin (BTC), the Bitunix analyst points to the 120,000–123,000 range as a high-density supply zone with heavy selling pressure concentrated above this level [1]. The analyst notes that 116,000 and 112,000 are secondary support levels that could serve as potential floors in the event of a downward correction. In the absence of a strong volume-driven breakout above the supply zone, BTC is likely to face rejection and return to lower levels [1].

The report recommends a cautious, phased trading approach. If the CPI data turns out colder than expected—suggesting a higher likelihood of interest rate cuts—traders should closely monitor the U.S. dollar and U.S. Treasury yields as key confirmation signals [1]. A significant daily volume spike and a breakout above the 120,000–123,000 range could signal renewed bullish momentum. On the other hand, hotter-than-expected inflation data could reduce the chance of rate cuts, potentially leading to a test of BTC’s resistance at 120,000–123,000 or a breakdown below the 117,000 daily support level, which could result in a deeper pullback [1].

Given the uncertainty, the Bitunix analyst suggests a conservative stance, including small position options hedging or strict trailing stop-loss strategies to manage downside risk [1]. The analyst also emphasizes the importance of monitoring trading volume, the U.S. Dollar Index (DXY), and U.S. Treasury yields as supplementary tools to confirm price direction [1].

Source: [1] Bitunix Analyst: CPI Bi-directional Risk on the Table, BTC in Range within High-Density Supply Zone — Risk Management and Phased Trading Strategy (https://www.theblockbeats.info/en/flash/306997)