Bitcoin faces key test below $120K after sticky CPI print

Takeaways from the conference:

• Data from the June CPI indicated that headline and core prices were rising, which reduced the expectation of a July interest rate reduction.

• Bitcoin must reclaim the $119,250–$120,700 zone to confirm bullish momentum and aim for fresh highs above $123,000.

BitcoinBTCThe price of the. rose to $118.400 on Tuesday from $16,500. release The US Consumer Price Index for June showed that inflation was rising for the second consecutive month. The headline CPI reached 2.7% over the past year, which was higher than expected but still below expectations. The core CPI was also slightly higher at 2.9%, but it fell short of expectations (3%). Overall CPI rose by 0.3% in a month, marking the biggest gain for five months. Core CPI was up by 0.2%.

These data show that food, transportation and shelter prices remain largely unchanged, while inflation is only minimally easing. US Dollar Index DXY rose 2.1% to 98.5. Markets were cautious. 

Bitcoin’s near-term prospects are met with mixed reactions. Although the expected core numbers provided some comfort, rising headline inflation dampened expectations of a more dovish stance at the Federal Open Market Committee’s July meeting. According to CME FedWatchThe Producer Price Index data for this week could confirm that the futures prices still favour a 54.3% probability of a cut in September.

Bitcoin might regain the upper hand if PPI prints are softer than predicted. If the PPI is hotter than expected, it could lead to another decline between $115,000-$110,000. 

Bitcoin’s position in the broader upward trend is solid, even though macroeconomic uncertainty persists. However, this week’s data may determine whether or not Bitcoin will make a breakthrough.

Related: Bitcoin speculators’ record cost basis boosts $100K support as BTC dives

Watch out for these Bitcoin key levels

The new annual high is $123,218, Bitcoin The market swung sharply back to $116.500, which was a sweeping retracement. This move neutralized positions that were overleveraged, and reset the market.

The key area for bulls to claim is between $119.250 – $120.700. This was an area where the sell-side had imbalanced the market, with aggressive sellers pushing the price down and leaving unfulfilled orders. This range is the key to a new bullish trend and a fresh peak beyond $123,000.

In the short-term, however, it appears that a more severe correction will be likely. Bitcoin may revisit the gap in fair value between $113.700 and $115.300. This zone is aligned to the 200-day EMA which provides dynamic support. If the price bounces back here, it would help support the continuation uptrend. BTC could retest its former high of $112,000 if selling pressure increases.

Crypto trader Magus says that despite short-term fluctuations, long-term trends indicate all Bitcoin drops are buy-in opportunities. Magus Crypto Trade noted On X the BTC that is $117,000 around it, this is a “gift,” The rally’s current strength is highlighted. 

Jelle, an anonymous investor expected BTC is expected to cut between $116,000-$118,000 before it can reclaim a position over $120,000. 

Related: Bitcoin price drop to $114K possible as BTC whales take profits

The article is not intended to provide investment advice. Each investment or trading decision involves some risk. Readers should do their own research before making any decisions.