The market’s bullishness has now spread to altcoins with Bitcoin SV capturing some of its momentum. According to CoinGecko, the token is up over 10% since last week, becoming one of the top gainers within this market environment.
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With private equity enjoying gains as well, the bullishness has leaked to the crypto market, turning the early August wipe into well-deserved upticks.
Bitcoin SV On Good Price Range For A Breakout
As of writing, the token sits right in the middle of the $40-$46 price range which will be essential for the coming breakout. For the bulls, maintaining the current momentum of the token is vital in the long term. The market’s continuous bullishness should be enough to prop up the bulls if exhaustion takes over.
However, the relative strength index (RSI) of the token reveals that the bulls and the bears are in a tight lock, indicating that BSV’s momentum has slightly gone down. But with the general market in support of the bulls in the short term, the token has a shot at taking $62 in the long term if the momentum is consistent.
But this also depends on the general outlook of the market. As G7 economies experience slightly better economic conditions, the market will continue to be positive on the coming release of several economic indicators in the coming weeks.
Market Hunkers Down As CPI Data Release Nears
As of writing, traders in traditional finance are still split between a 25 and 50 base point cut in the coming weeks. However, 51% of traders are still expecting a 50 bps cut once the consumer price data is released.
The CPI is one of the most crucial economic indicators that investors and traders are monitoring monthly. Last July, the CPI data showed a slight dip in CPI, indicating a slight dip in the purchasing power of the US dollar.
With the release of the CPI data nearing, the general market enters a lockdown phase, gaining slight upticks in the short term to stabilize the price in a manageable price range. The S&P 500 and the Dow Jones are both up over a percent as the market gradually slows its momentum.
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If the CPI data shows that inflation is dropping, the market’s assumption of a rate cut will eventually come true. A drop in interest rate will not only be beneficial for TradFi but also for the crypto market as the latter’s movement hinges on the movement of private equity.
However, another dip in CPI might push the US Federal Reserve to maintain its interest rates which is currently 5.5% after the 8th Federal Open Market Committee last month. This scenario will see large outflows on both stocks and crypto, hurting long-term and short-term gains.
Featured image from Host Merchant Services, chart from TradingView