Bitcoin (BTC) is trading around $119,049, pulling back slightly after a sharp rally that tested resistance near the $120,000 mark. The move comes as traders prepare for a potentially volatile week driven by upcoming US inflation data.
The Consumer Price Index (CPI) report, due Tuesday, will be followed by the Producer Price Index (PPI) later this week. Analysts warn that these economic indicators could either fuel BTC’s momentum or trigger a short-term correction.
Bitcoin’s recent rally pushed it into a key resistance zone just below $120,000, as seen in recent price action. The chart highlights multiple support areas:
- Near-term support around $112,000, aligned with previous breakout levels.
- Mid-range support between $104,000–$106,000, where buying pressure emerged earlier this summer.
- Major demand zone around $99,000, a critical level for maintaining bullish structure.
A sustained break above $120K could open the path toward $125,000, while a rejection may lead to a retest of lower zones.
The correlation between Bitcoin and broader macroeconomic conditions remains strong. If inflation shows signs of cooling, it could bolster risk-on sentiment and attract institutional inflows. On the other hand, persistent inflation may keep the Federal Reserve cautious, dampening speculative appetite.
“Investors are watching these numbers closely because they dictate the Fed’s stance. In turn, that affects liquidity across all markets, including crypto,” BITX analyst noted.
For now, BTC remains in a consolidation phase near its all-time highs, with market participants balancing optimism over long-term adoption against short-term macro risks.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.v