Key Takeaways:
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June CPI data has shown rising headlines and major inflation, reducing the expectations of an interest rate cut in July.
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Bitcoin must get the $ 119,250- $ 120,700 zone to confirm the bullish momentum and goals for freshly high over $ 123,000.
Bitcoin (Btc) Price rallies to $ 118,400 from $ 16,500 on Tuesday following the Release of June US consumer price index (CPI), which showed an increase in inflation for the second straight month. The CPI headline hits 2.7% year-on-year, the highest since February, matching expectations but from 2.4% in May. The core CPI was ticked above 2.9% annually, even though it came slightly below the forecasts (3%). The general CPI rose 0.3% month-to-month, the sharp gain in five months, with the main inflation up to 0.2%.
The data emphasizes that inflation remains adhesive, especially in basic segments such as food and transportation, as shelter prices are just eeased. The markets were carefully reacting, and the US dollar index (DXY) was strictly increased to 98.5, up to 2.1% in July.
Bitcoin’s short-term perspective gets mixed acceptance. The expected basic numbers are offering some relief, but the headline inflation rises dampened with a slippery pivot at the July Federal Open Market Committee meeting. According to CME FedwatchPricing futures still favors a 54.3% chance of a September haircut, which could achieve further confirmation from Producer Price Index (PPI) data this week.
If the PPI is softer than expected, Bitcoin can recover control over the above $ 120,000. However, a warmer PPI printing can trigger another pullback between $ 115,000 and $ 110,000.
While macroeconomic uncertainty, bitcoin remains well with a greater climbing, but this week’s data can determine if the next move is a breakout or breakdown.
Related: The Bitcoin record cost basis boosts $ 100k support as BTC dives
Bitcoin’s basic levels to guard
After surging with a new annual high $ 123,218, Bitcoin Back to $ 116,500 on Tuesday, sweating. The move is neutralized overleveraged positions, market reset.
For Bulls, the key zone to recover now lies between $ 119,250 and $ 120,700, a place of imbalance seller, where aggressive sellers have previously pushed the price lower, leaving unfinished purchase orders. A clean breakout above this range will signal a modified bullish momentum and open the door for fresh highs beyond $ 123,000.
However, a deeper correction will appear more likely in the short term. Bitcoin can revisit the fair value gap between $ 113,700 and $ 115,300, a zone aligned with 200-day EMA, offering dynamic support. A bounce here will support the continuation of the broader uprising. If the pressure sale is increasing, the BTC can retest the former all-time high around $ 112,000 before continuing the upward trajectory.
Ignoring short-term volatility, the long-term market structure indicates that all bitcoin dips are potential purchases of opportunities. Crypto trader magus mentioned In X that the BTC around $ 117,000 is a “gift,” which wraps up the current rally strength.
Also, the unknown investor Jelle Looking forward BTC to chop between $ 116,000 and $ 118,000 before it can re -get a position of over $ 120,000.
Related: Bitcoin price drop in $ 114K possible as BTC whales earn income
This article does not contain investment advice or recommendations. Every transfer of investment and trading involves risk, and readers should conduct their own research when deciding.
