Attention Traders! The CPI is coming: Volatility on the horizon or bullish continuation?
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โ๐จ The crypto market is gearing up for one of the most important macroeconomic data releases of the month: the publication of the CPI (Consumer Price Index) from the U.S.
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โ๐น Scenario 1: CPI Lower than Expected (Bullish ๐)
If inflation comes in lower than projections, the market will breathe a sigh of relief. This usually weakens the dollar (DXY) and gives a strong boost to Bitcoin and the rest of the market. Good zones to look for buy confirmations at key support levels.
โ๐น Scenario 2: CPI Higher than Expected (Bearish ๐)
If inflation comes in higher than anticipated, fears will return that the Fed will keep rates high for longer. We could see liquidation wicks to the downside. Watch out for over-leveraging before the data.
โ๐น Scenario 3: CPI In Line with Consensus (Neutral/Bidirectional Volatility โ๏ธ)
Sometimes the data comes out exactly as the market expected. In this scenario, itโs common to see price sweep the Stops of futures in both directions (up and down) before deciding on a clear trend. Be cautious of revenge trading in the first 15 minutes!
โโ ๏ธ My golden rules for today:
โIf you have open positions, secure profits or adjust your Stop Loss (SL).
โIf youโre a beginner trader, the best position during the news might be to stay out of the market and observe how price reacts at important support and resistance areas. Preserving capital is the first victory!
โHow do you see the market today, bullish or bearish? Are you trading or waiting in USDT? Iโll read your thoughts in the comments. ๐
โ#MarketUpdate
#MacroEconomy #Inflation #BTC #IPC โโ ๏ธ (Disclaimer): The above content is purely educational and informational and does not constitute financial advice. Remember to do your own research (DYOR) and manage your risk strictly.