Bitcoin Prepares For CPI Figure as Dollar Depreciates

• For the past few days, Bitcoin has had difficulty moving higher and staying above the $31,000 mark.
• The bulls are fighting to defend $1,840 but can't push Ethereum above $1,900.
• Bears maintained pressure as the U.S. Dollar Index (DXY) fell below 102.
• Second-quarter profits and July 12 inflation data may affect the US equity market.
• The following data point that the markets will be focusing on is the CPI data release on Wednesday.

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For the past few days, Bitcoin has struggled to reach beyond $31,000, but Standard Chartered is confident for this year and next. According to the bank, Bitcoin might reach $50,000 this year and $120,000 by the end of next year. Bitcoin's unexpectedly flat July trading suggests investors are hesitant to chase the 21% price surge over the past month. The range-bound trading pattern may be determined by Wednesday's Consumer Price Index (CPI), the first substantial inflation data since mid-June. A leveling or increase might restrict investors, while a sustained decrease could bolster them.

Bears maintained pressure as the U.S. Dollar Index (DXY) fell below 102. The index may fall to 101.90. Buyers must protect this level because a break below it might threaten 100.80. S&P500 bulls are trying to defend 4,375, but bears are aggressive at higher levels.

Bitcoin Balances Drop on Exchanges:

Since BlackRock applied for a spot BTC ETF, institutional investors have steadily expanded their holdings of Bitcoin. This has corresponded with a drop in BTC holdings across exchanges to fresh lows. Meanwhile, the greater accumulation of institutional investors has coincided with a decrease in Bitcoin balances on exchanges, indicating that investors are increasingly preferring self-custody.

Bitcoin Price Analysis:

Bitcoin bounced off the $30,000 psychological mark and retested $31,000 since last week. Short-term retests weaken support and resistance levels. Bulls must push the price to $31,000–31,500 to avoid a decline. If bulls can conquer this zone, BTC/USDT may climb to $33,000.

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