Main Points:
- Bitcoin drops after Trump-Harris debate fails to support pro-crypto policies.
- BTC/USD fell by $1,000 within an hour, hovering around $56,099.
- Cryptocurrency market disappointed by lack of crypto policy discussion.
- CPI data expected to have a minimal effect, with focus shifting to employment statistics.
- Analysts suggest current correction is a standard pre-CPI adjustment.
- BTC struggles against key resistance levels on moving averages.
The Impact of the Trump-Harris Debate on Bitcoin Prices
The recent U.S. presidential debate between Donald Trump and Kamala Harris left cryptocurrency enthusiasts disappointed, as neither candidate expressed support for crypto policies. This absence of discussion on cryptocurrencies triggered a notable downturn in Bitcoin’s price. On September 11, 2024, Bitcoin (BTC) lost much of its recent gains, with the BTC/USD pair dropping by $1,000 in just an hour. As of the latest data, Bitcoin was trading around $56,099 on Bitstamp.
This price movement reflected the broader market sentiment as traders expressed frustration over the debate’s failure to address any significant crypto-related issues. According to QCP Capital, a leading trading firm, the absence of pro-crypto policies could lead to risk-off behavior as the U.S. presidential election approaches, potentially adding volatility to risk assets like Bitcoin.
Anticipation of the Upcoming CPI Report
Despite the market’s immediate reaction to the debate, the primary focus shifted toward the forthcoming release of the U.S. Consumer Price Index (CPI) for August, scheduled for September 11, 2024. The CPI report is expected to show a slight decrease, with a projected figure of 2.55%, down from the previous 2.9%. However, some analysts argue that the CPI’s impact on Bitcoin might be minimal, with attention now turning toward employment data, which could have a more profound effect on the market.
QCP Capital suggested that while there might be a slight uptick after the CPI release, the real market driver could be unemployment statistics. Recent employment data had caused temporary volatility in Bitcoin’s price, but no clear trends have emerged.
Standard Pre-CPI Correction
Michaël van de Poppe, a cryptocurrency analyst, pointed out that Bitcoin’s current price movements represent a standard correction ahead of the CPI release. He noted that this temporary pullback is typical of market behavior before significant economic events like the CPI. Van de Poppe added that Bitcoin could maintain a healthy position if it stays above the $55,000–$56,000 range, stating, “The current correction is simply part of the usual process before CPI announcements.”
Key Resistance Levels: Moving Averages and Price Action
Further analysis of Bitcoin’s price action revealed key resistance levels, which traders must keep an eye on. Cryptocurrency trader Daan Crypto Trades highlighted a significant pattern on the four-hour chart. According to Daan, Bitcoin is currently trading below both the 200-period Simple Moving Average (SMA) and the Exponential Moving Average (EMA), located at $59,200 and $58,840, respectively.
This suggests that Bitcoin’s ability to break above these moving averages will be critical for determining the market’s next direction. As Daan noted, “Whether BTC trades above or below these moving averages is a good indicator of market strength. Bulls will want to reclaim these levels to push for a further rebound.”
Volatility Ahead with Key Economic Indicators
As the cryptocurrency market remains sensitive to global events and economic data, the upcoming CPI report and subsequent employment figures will likely determine Bitcoin’s short-term trajectory. Traders should monitor these key data points, while also keeping an eye on Bitcoin’s technical indicators, particularly its movement relative to the 200-period moving averages.
While the immediate price drop following the Trump-Harris debate highlights market disappointment, Bitcoin’s resilience near the $55,000–$56,000 level suggests that any further corrections might be temporary. The market’s reaction to upcoming economic data will be crucial for determining whether Bitcoin can recover its recent losses or face additional downside pressure.
