Bitcoin is on the cusp of a significant price change as investors await the upcoming U.S. inflation report scheduled for July 15. After more than 230 days of trading in the $109,000 to $112,000 range, the asset is forming a breakout pattern.
Bitcoin's Consolidation before Possible Breakout
Last week, the U.S. jobs data came in stronger than expected, with 147,000 non-farm jobs added, above the 110,000 estimate. This kept the unemployment rate at 4.1%. Following the release, the price of bitcoin briefly dipped to about $109,000 as the strong labor market threatens to slow down the Federal Reserve's rate cut in the short term.
Impact of Inflation Data on the Market
Despite the initial dip, traders are closely monitoring inflation data that could change the Fed's position. Analyst Ran stated, "If the inflation rate is within the range of 2.3 percent to 2.4 percent or below, the Fed could consider reducing its rate this month." Such a decision can significantly boost Bitcoin and other risky assets.
Establishing a Backstory for Price Growth
Data shared by CryptoCon suggests that Bitcoin typically rallies by about 50 percent after long periods of price consolidation. If the current breakout follows that pattern, Bitcoin could rise to around $160,000 within weeks. This is further supported by historical trends, as Q3 of post-halving years, such as 2024, has shown average gains of 49 percent.
Short-term targets will remain between $150,000 and $160,000, while some analysts are considering a shift towards $250,000 by the end of the year if inflation data meets or beats expectations.
