Bitcoin Failed to Surpass $65,000 Four Times: Eyes on US Inflation Data on August 12

After four failed attempts to stay above $65,000, the Bitcoin price fell to $64,000 as markets focused on the US inflation data to be released on August 12.

Bitcoin’s price pulled back after rising above $64,400 during Asian trading, losing more than 1% on a daily basis. Contrary to expectations, last week’s contraction in US employment data reduced the probability of a rate hike in September from around 80% at the end of July to 44%.

Nexo analyst Iliya Kalchev stated that the failed attempts at the $65,000 level might indicate an accumulation of short positions above this level rather than aggressive profit-taking. CF Benchmarks research manager Gabe Selby evaluated the CME CF Bitcoin Volatility Index falling to 35.56 on August 4 as an indication that the expectation for upward movement in Bitcoin is underpriced.

The critical level for Bitcoin is $65,000

Bitfinex analysts reported that only one of the accumulations in ETFs and corporate treasuries supporting Bitcoin demand has recently put pressure on the price. Strategy’s potential $5 billion liquidation authorization is not a confirmed sale, but it was highlighted as a risk factor for the market. XS.com manager Simon-Peter Massabni also said that Strategy sold approximately 1,700 Bitcoins last week, making the recovery fragile.

CoinShares research manager James Butterfill said he expects Bitcoin to end the year above its current level of around $64,000 and that the lows during the March-June period could be the cycle bottom. Soft inflation data could bolster rate cut expectations and demand for risky assets; hot data could lead to a rapid repricing in the interest rate outlook.