Bitcoin Rally at $117K on Inflation Data; Resistance at $127K & $144K
Bitcoin rallied to a peak of $124,533 on August 14 after July’s Producer Price Index surprised with a 0.9% month-on-month gain, the highest in nearly three years. The cryptocurrency now trades around $117,741, with traders eyeing resistance levels at $127,000 and $144,000 based on a short-term holder realized price of $107,000. Mixed inflation data, including a core Consumer Price Index reading of 3.1%, has driven market volatility. Participants are also monitoring potential Federal Reserve rate cuts as early as September, which could influence Bitcoin’s price trajectory. These factors suggest further upside potential amid elevated uncertainty.
Bullish
The unexpected 0.9% rise in the Producer Price Index has historically fueled risk appetite, as seen in late 2021 when stronger-than-expected inflation data sparked a rally. Coupled with potential Federal Reserve rate cuts in September, traders are positioned bullishly above the short-term holder realized price of $107,000. Resistance at $127,000 and $144,000 marks profit-taking zones; a decisive breakout could trigger further gains. In the short term, Bitcoin may remain volatile around upcoming inflation reports. Over the longer term, Fed easing typically reduces the opportunity cost of holding Bitcoin, supporting sustained uptrends. Similar dovish Fed signals in mid-2023 drove a near-20% rally, indicating a repeatable bullish pattern.