Tonight at 8:30, the market is set to face crucial CPI data (expected value 4.18%, previous value 3.8%). Ahead of the release, macro liquidity is showing signs of fatigue: around $3 billion in stablecoins have exited the crypto market recently, and with the Bank of Japan expected to raise interest rates to 1% by the end of June, global liquidity is tightening. Given this context, tonight's volatility is expected to be intense, with bulls and bears battling it out to the bitter end.
1. If CPI is higher than expected (bearish):
Interest rate hike expectations may reignite, putting direct pressure on the market to go down, so avoid blindly trying to catch a falling knife on the left side.
2. If CPI is lower than expected (bullish):
The charts will likely see a short-term spike. However, considering the outflow of funds, this could very well be a trap to lure in the bulls.
1. If CPI is higher than expected (bearish):
Interest rate hike expectations may reignite, putting direct pressure on the market to go down, so avoid blindly trying to catch a falling knife on the left side.
2. If CPI is lower than expected (bullish):
The charts will likely see a short-term spike. However, considering the outflow of funds, this could very well be a trap to lure in the bulls.