Bitcoin traders eye the BTC price ‘Darth Maul candle’ as the consumer price index is set to hit a 2-year low

Bitcoin (BTC) surged into July 12 as the week’s main macro event was just hours away.

BTC/USD 1 hour chart. Source: TradingView

CPI is likely to hit the lowest level since March 2021

Data from Cointelegraph Markets Pro and TradingView followed BTC price momentum as it slowly neared $31,000.

The largest cryptocurrency showed low volatility at the start of the week, with local highs and lows still well defined.

With liquidity tight around the spot price, analysts were hoping for a reshuffle following the release of the June edition of the United States Consumer Price Index (CPI).

The consumer price index is likely to be around 3.2% – the lowest reading since March 2021 – and should suggest that US inflation is slowing further.

“The Cleveland Fed, the University of Michigan and Truflation are all forecasting a similar number,” financial commentator Tedtalksmacro noted in part of the day’s analysis.

US inflation chart. Source: Tedtalksmacro/Twitter

Traders acknowledged that the sudden volatility could prove deceptive as Bitcoin tends to decide price action a bit after the data is released.

“There’s a good chance we’ll see the usual ‘Darth Maul’ candle with both highs and lows breaking on the low timeframe just after the CPI,” Daan explained to Crypto Trades.

“From there, actual direction is often chosen for the day, which I think could then target the 31.1K or 30.2K levels.” BTC/USD annotated chart. Source: Daan Crypto Trades/Twitter

“The previous 4 CPI data releases all followed a very similar pattern for Bitcoin,” trading suite Decentrader added on the day.

“Both-way volatility leads to liquidation of everyone, then price reverts back to where it was just prior to the CPI release.”

Bitcoin “Looks Good” As A Bull Market Mimic

On longer time frames, popular trader Mustache considered the chances of a repeat of classic bull runs.

Related: CPI Meets Low BTC Supply – 5 Things to Know About Bitcoin This Week

He noted this week that the BTC/USD monthly chart is about to break above its 20-period SMA (simple moving average).

“Every time BTC made a monthly close ABOVE the SMA 20 line, it was the ultimate confirmation of a bull run. In the following two years it never fell below that line again (except for the Covid crash),” he commented, adding that the current situation looked “good”.

Annotated BTC/USD chart. Source: Mustache/Twitter

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