The Great God said: The CPI data for August 14 is about to be released, beware of the instant spikes caused by the data

The U.S. Department of Labor announced last night that the Producer Price Index (PPI) for July 2024 showed a month-on-month increase of 0.1%, the lowest since May, and below the market expectation of 0.2%. The year-on-year increase also fell from 2.7% in June to 2.2%, the lowest since March, also below the market expectation of 2.3%. This indicates that inflationary pressures in the U.S. continue to ease, encouraging all four major U.S. stock indices to rise.
Bitcoin continued to oscillate and rise after the PPI data was released last night, breaking through the $60,000 mark, possibly due to short squeezes, quickly climbing to around $61,575. As of the time of writing, it has slightly retraced to $61,045, up 1.91% in the last 24 hours.
It is important to note another key data point, the U.S. Consumer Price Index (CPI) for July, which will be released tonight at 20:30, and may cause significant fluctuations in Bitcoin's price, so caution is advised.
Bitcoin 4-hour chart

First, according to the Bollinger Bands indicator on the 4H Bitcoin chart, the current price of Bitcoin is between the middle and upper bands, indicating that the market is in a strong upward trend. The upper and lower bands are beginning to narrow, suggesting that market volatility has decreased, but the price remains above the middle band, indicating that there is still potential for upward movement in the short term.
Second, based on the KDJ indicator on the 4H Bitcoin chart, both the K and D values are at high levels, and the J value shows signs of being overbought. This suggests that the market may face a correction in the short term, but the stability of the KDJ at high levels indicates that overall market sentiment remains bullish.
Finally, according to the MACD indicator on the 4H Bitcoin chart, the DIF line is above the DEA line, and both lines are above the zero axis, showing a strong bullish trend. The MACD green histogram has turned red, indicating that bullish momentum is gradually increasing, but there are currently no significant signs of a breakout, suggesting that the market may continue to oscillate around the current price.
Bitcoin 1-hour chart

First, according to the Bollinger Bands indicator on the 1H Bitcoin chart, the current price of Bitcoin is close to the upper band, indicating that there is some upward momentum in the short term. The upper and lower bands have expanded, suggesting that market volatility may increase. If the price continues to operate near the upper band, it may continue to rise.
Second, based on the KDJ indicator on the 1H Bitcoin chart, both the K and D values are at relatively high positions, and the J value has entered the overbought zone, indicating that there may be a risk of correction in the short term. The KDJ indicator is sensitive to short-term price fluctuations, so caution is needed for any potential short-term adjustments.
Finally, according to the MACD indicator on the 1H Bitcoin chart, the DIF line is above the DEA line, and both lines are above the zero axis, indicating strong upward momentum in the market. The MACD red histogram is gradually increasing, further confirming the current bullish trend.
Comprehensive analysis: Bitcoin currently shows a certain bullish trend on the 4-hour level, with both the Bollinger Bands and MACD indicating upward momentum in the market. However, the KDJ indicator is in the overbought zone, so caution is advised for potential correction risks in the short term. Bitcoin shows a strong bullish trend on the 1-hour level, with both the Bollinger Bands and MACD indicating further upward potential. However, the KDJ indicator shows overbought signals, suggesting that there may be some correction pressure in the short term.
In summary, the following suggestions are provided for reference:
Suggestion 1: Go long near 60,500-60,800, target 61,800-62,300.
Suggestion 2: Go short near 61,800-62,300, target 60,500-60,000. (Set stop-loss according to position, and be cautious of sudden spikes caused by CPI data.)
Time of writing: (2024-08-14, 19:00)
(Article by: Daxian Says Coin)