10x Research: The recent rebound in Bitcoin may be due to short covering ahead of the CPI announcement

ChainCatcher news, 10x Research stated that on July 6, when the Bitcoin trading price was $56,746, it suggested taking a tactical bullish position, expecting that a rate cut rebound could push Bitcoin up to around $60,000. Yesterday, due to short covering ahead of the CPI release, Bitcoin rebounded to $59,350, aligning with the rebound expectations. This week's CPI report is complex, as the anticipated decline has already led to a +5% increase in short covering.

Trading based on data releases and events requires a deep understanding of the constantly changing market expectations and positioning. Extreme volatility depends on unexpected factors and traders' positioning.