BTC$27 060.57


ETH$1 675.53




Binance Coin




USD Coin


Bitcoin hits $45K ahead of July inflation report, but one fractal hints at looming correction

09 Aug 2021


The flagship cryptocurrency hits its highest level in more than two months as inflation is expected to rise by another 0.5% in July. Bitcoin (BTC) reached its highest level in more than two months, with just a few days remaining before the July inflation report.

The top cryptocurrency climbed 1.65% to $45,363 on Sunday, continuing the upside momentum that had already seen it jump 21.62% from its low of $37,300 on Thursday.

Momentum was strong among Bitcoin rivals as well. Ether (ETH), the second-largest crypto by market capitalization, increased 29.78% from its low of $2,630 on Tuesday, crossing $3,100 on Sunday. Its gains came after Ethereum’s London hard fork went live on Thursday, which should add deflationary pressure to the supply of ETH.

July inflation report, on-chain 

On Wednesday, the United States Bureau of Labor Statistics will release July’s inflation report, with markets forecasting a 0.5% spike. The projections appear after the consumer price index (CPI) jumped to 5.4% year-over-year in June to log its biggest increase in 13 years.

Bitcoin bulls have responded positively to the recent inflation reports. They effectively guarded the cryptocurrency against falling below $30,000 after the May 19 crash. Meanwhile, their recent efforts to push the prices above $40,000 — eventually leading into a slow upside break above $45,000 — indicate strong demand for Bitcoin, which appears to be breaking out of its summer slump.

Lex Moskovski, chief investment officer of Moskovski Capital, highlighted a Glassnode chart that showed dramatic spikes in entities entering the Bitcoin network, matching the growth with the rising BTC/USD rates. “Amount of new Bitcoin entities continues to hit all-time high,” Moskovski tweeted.

Additionally, on-chain analyst Willy Woo said the ongoing Bitcoin momentum should push its prices above $50,000, citing a supply-and-demand imbalance in the market. He said that all investor cohorts were buying Bitcoin, which led to a supply shock.

Woo referred to a chart he posted on July 15 when Bitcoin’s market corrected lower after having peaked at $36,675. The graph, as shown below, highlighted events of Bitcoin’s liquidity shock across all the exchanges and their relation to the prices.

Woo explained: “Fundamentals do not predict short term price, but given enough time price discovery reverts to fundamentals. Exact value is $53.2k today, with a standard deviation band between $39.6k - $66.8k (68.5% confidence).”

Bearish fractal

However, the latest Bitcoin climb does carry risks of becoming a dead cat bounce, based on previous top-to-bottom Fibonacci retracement fractals. After setting up record highs, Bitcoin tends to correct toward its 200-week exponential moving average (200-week EMA; the yellow wave), where it eventually bottoms out to pursue another bullish cycle.

In the past two events, the BTC/USD exchange rate posted fake recovery rallies after testing the 23.6 Fib line as support. Those upside moves failed short of turning into big bullish momentum after facing resistance at higher Fib levels.

For instance, in 2019, Bitcoin rebounded by more than 50% after bouncing off from its 23.6 Fib line near $7,357. But the cryptocurrency faced extreme selling pressure near its 61.8 Fib line of $10,613. Eventually, it resumed its downtrend and crashed to as low as $3,858 in March 2020.

If the fractal repeats, Bitcoin could face extreme resistance at the 61.8 Fib level at $46,792 and correct lower to retest its 200-day EMA, which currently sits below $20,000. ndependent market commentator and trader Keith Wareing suggested that an imminent bullish crossover between Bitcoin’s two weekly moving averages is hinting at the beginning of a multi-month bull run. Dubbed as the moving average convergence divergence (MACD), the indicator was instrumental in predicting the 2020 bull run.

“The weekly MACD is due to cross bullish on Bitcoin after tonight’s close,” opined Wareing to his Twitter followers, with the price of Bitcoin so far maintaining above $44,500 at the time of writing.


Tips to Choose the Right Second Citizenship Program
Tips to Choose the Right Second Citizenship Program
Bitcoin’s continued slide down
Bitcoin’s continued slide down
A new round of crypto market mistrust
A new round of crypto market mistrust
Bitcoin holds its range, but pressure mounts
Bitcoin holds its range, but pressure mounts
Bitcoin unlikely to end correction
Bitcoin unlikely to end correction
Bitcoin looks set to take a severe dive
Bitcoin looks set to take a severe dive
Bitcoin set for a deeper correction
Bitcoin set for a deeper correction
Bitcoin falls under pressure
Bitcoin falls under pressure
Bitcoin sticks to bull trend on banks' woes
Bitcoin sticks to bull trend on banks' woes

Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap 7d price change
1 Bitcoin (BTC) BTC Bitcoin predictions 90.8% 2 $27 060.57 2.57% 1.46% $527 654 007 369 BTC 7 days price change
2 Ethereum (ETH) ETH Ethereum predictions 90% 5 $1 675.53 3.68% 4.95% $201 459 487 311 ETH 7 days price change
3 Tether (USDT) USDT Tether predictions 94% 1 $1.000845 0.16% 0.08% $83 346 901 195 USDT 7 days price change
4 Binance Coin (BNB) BNB Binance Coin predictions 91.6% 4 $216.29 1.61% 2.38% $33 275 819 779 BNB 7 days price change
5 XRP (XRP) XRP XRP predictions 92.4% 9 $0.508986 2.05% -0.02% $27 135 264 539 XRP 7 days price change
6 USD Coin (USDC) USDC USD Coin predictions 92% 1 $1.000627 0.06% 0.04% $25 546 311 582 USDC 7 days price change
7 Lido stETH (STETH) STETH Lido stETH predictions 93.6% 1 $2 941.39 -0.40% -3.32% $10 258 752 564 STETH 7 days price change
8 Wrapped TRON (WTRX) WTRX Wrapped TRON predictions 82.8% 24 $0.088277 4.40% 6.03% $8 975 631 926 WTRX 7 days price change
9 Cardano (ADA) ADA Cardano predictions 94.4% 6 $0.252515 3.14% 2.93% $8 870 464 805 ADA 7 days price change
10 Dogecoin (DOGE) DOGE Dogecoin predictions 91.2% 4 $0.061846 1.83% 0.18% $8 732 826 301 DOGE 7 days price change
11 Solana (SOL) SOL Solana predictions 88.8% 20 $20.21 5.47% 2.45% $8 344 217 667 SOL 7 days price change
12 TRON (TRX) TRX TRON predictions 82.8% 22 $0.088719 4.86% 6.27% $7 903 170 455 TRX 7 days price change
13 Toncoin (TON) TON Toncoin predictions 62.8% 84 $2.23 2.50% -3.09% $7 667 083 649 TON 7 days price change
14 Dai (DAI) DAI Dai predictions 95.6% 1 $0.999875 0.01% 0.01% $5 347 220 318 DAI 7 days price change
15 Polkadot (DOT) DOT Polkadot predictions 90.8% 7 $4.10 1.87% 1.81% $5 032 931 540 DOT 7 days price change

Be the first to receive Cryptocurrency Price Predictions and Forecasts daily

Get cryptocurrency price predictions, forecasts with analysis and news right to your inbox.

© 2015-2023

The usage of this website constitutes acceptance of the following legal information. Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website, including information about the cryptocurrencies and bitcoin is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Crypto Rating shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about cryptocurrencies. The entire responsibility for the contents rests with the authors. Reprint of the materials is available only with the permission of the editorial staff.