U.S. inflation came in below estimates while Bitcoin was unable to overcome a major resistance level. Headline CPI came in at 3.5 percent, versus estimates of 3.8 percent, while core CPI eased to 2.6 percent, from the expected 2.8 percent. Lower inflation typically tends to benefit riskier assets, as it builds expectations for a more easing monetary policy.
At the time of writing, Bitcoin’s price was trading higher and followed a rise from about $62,810 to $63,764 before the advance hit a wall under $64,000. This largest cryptocurrency has failed to break through resistance at $64,000 many times this month.
The resistance is notably strong for Bitcoin
Over the last few weeks, there has not been much change to the overall trend of Bitcoin. After the decline from approximately $67,250 during mid-June to just about $57,750 by the end of the month. The price has seen some bounces testing the zones close to $63,000. Ever since, the price action has been in a range between $62,000 and $64,000.
Resistance is currently found between the 38.2 percent Fib retracement at $63,619 and the 23.6 percent level at $65,006. Sellers have put resistance on price within this zone three times within the past two weeks. On the support side, the level of $63,320 comes into play. The daily pivot has shown support at $62,783. In the case that that level fails, we need to consider the resistance at $61,377, followed by strong support near $59,780, which is where the bottom was marked.
The market bulls still lack control despite the improved momentum
The bulls already got some good news with the inflation report, but the buying pressure is still missing from the technical indicators side.
The MACD histogram has gone positive again, indicating downside momentum has eased off the pressure, but the RSI indicator has been remaining bearish on all the timeframes below the neutral 50 line (RSI7 is at 43.56, RSI14 is at 45.63, and RSI21 is at 44.21).
This is the sign that the market participants should be seeing that the market is in recovery, but it’s not bullish yet. The momentum has become better since June lows; however, bulls have not gained enough momentum yet to push through the resistance level.
Ethereum is comparatively stronger than the other major assets
Bitcoin has bounced off the prior level, although it does not boast the highest momentum among the top digital currencies. With the support of softer CPI data, the market sentiment has improved, with each asset responding according to its formed technical setup.
Ethereum is currently holding the strongest position. It is changing hands at $1,845.50, and with RSI readings of 56.56, 53.95, and 50.08. All of them sitting at or above the neutral 50 level. The MACD histogram is standing on the positive side and that is depicting that the momentum is improving alongside price. Ethereum is now experiencing some resistance near $1,848. In the bullish case, a breakout above that level would serve to strengthen the recovery. In contrast to Bitcoin, this digital asset’s momentum indicators are aligning with the same trend as the price.
The leading layer 1 project, Solana, is currently on the weaker side. Its RSI-7 is just 34.23, although the longer RSI readings also remain below 50. The MACD histogram is lying in negative territory, and that highlights that the bears continue to hold control regardless of the broader market rebound. The digital asset has rebounded from recent lows, but the technical indicators are not aligning with the idea of the trend shifting to the bullish side as of now.
XRP is also struggling to build momentum. Its RSI readings remain between the low 30s and low 40s, while the MACD stays close to the zero line, showing neither buyers nor sellers have full control. XRP is holding support, but unlike Ethereum, it has yet to produce a convincing improvement in momentum that would support a stronger recovery.
BNB sits somewhere between Bitcoin and Ethereum. Its MACD histogram has turned slightly positive, suggesting selling pressure is easing, but RSI remains in the low-to-mid 40s. That points to improving momentum without a confirmed bullish trend. Like Bitcoin, BNB needs stronger buying pressure before the recent recovery can turn into a sustained breakout.
