The key takeaways
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The June CPI showed rising inflation in both headlines and core figures, which reduced expectations for a rate reduction in July.
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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 Inflation was up for the second month in a row according to the US Consumer Price Index. 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 was up by 0.3% in the month of February, marking a sharpest increase since May, while core inflation increased 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 outlook is mixed. Core figures were expected and provided some relief. However, the rising inflation headlines dampened any hopes for a pivot to the dovish side at July’s Federal Open Market Committee. According to CME FedWatchFutures still indicate a 54.3% likelihood of a reduction in September, and this could be confirmed by the Producer Price Index (PPI), which was released last week.
Bitcoin could regain its control if the PPI is softer than anticipated. 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
In the wake of a record-breaking year, $123,218 was reached. Bitcoin On Tuesday, the market plunged to $116.500. This move corrected overleveraged position, 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 unfilled purchase orders. This range is the key to a new bullish trend and a fresh peak beyond $123,000.
A deeper correction is more likely in the near term. 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. This bounce would be supportive of the broader upward trend. 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,” Underlining the strength of the rally.
Jelle, an anonymous investor expected BTC will chop its position between $116,000 to $118,000, before it regains a place above $120,000.
Related: Bitcoin price drop to $114K possible as BTC whales take profits
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Source: cointelegraph.com
