Home Markets Crypto Markets Will Face The Biggest Test Of 2022 This Week, Says Analyst Justin Bennett – Here’s Why

Crypto Markets Will Face The Biggest Test Of 2022 This Week, Says Analyst Justin Bennett – Here’s Why

Crypto Markets Will Face The Biggest Test Of 2022 This Week, Says Analyst Justin Bennett – Here’s Why

Financial analyst Justin Bennett says inflation data released this week will be the biggest test of the year so far for crypto markets.

In a new video update, the popular trader says the Consumer Price Index (CPI) and Producer Price Index (PPI) data could shake up the macro environment and significantly affect the cryptography.

“We not only have CPI or PPI, but we have both back to back next week, so these events are going to be the ones to pay attention to not only for the stock market but also for the crypto market…

The CPI and PPI will give us an idea of ​​the type of inflation we are currently seeing in the economy. Obviously, inflation is a hot topic right now because it dictates how quickly the Fed and other central banks raise rates. The faster and more aggressively these central banks raise interest rates, the greater the pressure on the economy and financial markets as a whole.

This includes cryptography. Clearly, Bitcoin has been tracking the S&P 500, so financial markets as a whole will be watching both of these events next week.

The analyst says that bitcoin (BTC) should see a daily close above the $23,000 level to return this area to the support. At the time of writing, BTC is trading at $23,950.

“If we see that, $23,450 will be next. You can see where the market is so far, struggling to top that today. In fact, today’s high so far is $23,476, that’s no coincidence. Again, $23,450 is the resistance level to watch.

If next week’s inflation data is lower than expected or expected or higher than expected the market is rallying what I’m going to look for in bitcoin and how I’m going to trade is if we get a daily close above $23,000, so I’ll be looking to bid as new support. Same with $23,450.

Very simple: if the market can close above $23,000, $23,000 becomes support. If we close above $23,450, this level becomes support.

Key resistance above this will be around $24,200, this is obviously a major hurdle here for Bitcoin and one to watch if we get that break higher.

If the market can really start to rally next month through the rest of August, a level to watch here will be around $25,000. I’ve talked about this before, but half of the $25,000 is going to be an area to watch.


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