Bitcoin's price outlook is showing positive trends following the release of the US Consumer Price Index (CPI) data for July, impacting market expectations for Federal Reserve interest rate cuts.
Market Trends for Bitcoin
Following the CPI report, the inflation rate for July remained at 2.7% year-on-year, pushing the odds of a Fed rate cut to 93.9% for September. In this context, Bitcoin (BTC) may attract new investments as lower interest rates reduce the opportunity cost of holding it.
Technical Analysis and Support Levels
Technical analysis shows that Bitcoin may struggle to break above $120,000, with critical support levels identified between $117,650 and $115,650. Potential downturns could test a CME gap near $95,000. A bullish flag pattern breakout is observed on the daily chart, indicating potential upward movement.
Market Expectations and Future Projections
Upcoming economic reports, such as the Producer Price Index (PPI), will be crucial. If PPI comes in lower than the expected 2.3%, it may strengthen bullish signals for Bitcoin. Analysts like Titan project similar bullish targets of $137,000 if Bitcoin manages to break the $120,000 threshold.
Overall, the Bitcoin market remains positive, but traders should closely watch key support levels and future economic reports to gauge market sentiment.
