Key takeaways
- BTC has reclaimed the $114k level and is now targeting resistance near $117k.
- Core Producer Price Index (PPI) fell 0.1% month-over-month, increasing the likelihood of a Fed rate cut next week.
Bitcoin reclaims $114k
The cryptocurrency market has extended its strong start to the week, with Bitcoin and other major tokens trading in positive territory. Bitcoin retook the $114k level on Wednesday after gaining roughly 3% in recent days.
This upward move followed the PPI data released Wednesday. Core PPI, which excludes food and energy, fell 0.1% month-over-month, below the 0.3% increase analysts had expected. Annual core inflation slowed to 2.8% from July’s revised 3.4%.
The cooling in inflation could increase the chances that the Federal Reserve will cut rates next week. CPI figures are due Tuesday, and those numbers will likely play an important role in shaping the Fed’s decision.
In an email to CoinJournal, XBTO’s Head of Investments, Javier Rodriguez-Alarcón, said a Fed rate cut could spark Bitcoin’s next breakout. The analyst added:
Macro conditions are also supportive: investors broadly expect the Federal Reserve to begin cutting rates this month, which has lifted risk appetite and strengthened Bitcoin’s role as a hedge.
At the same time, the SEC has signaled a more crypto-friendly regulatory agenda and Cboe is preparing to launch longer-dated Bitcoin and Ethereum futures, illustrating how policy and market infrastructure are evolving in parallel.
BTC targets $117k resistance
The BTC/USD 4-hour chart looks bullish as Bitcoin has shown solid performance over the past days. Momentum indicators are also tilted positively, suggesting BTC may be gearing up for another upward move.
An RSI around 62 indicates buyers are in control, with MACD lines also in bullish territory. If the rally continues, BTC could push past the first major resistance at $117,424 in the coming hours or days. A sustained bullish move would open the path toward reclaiming the $119k zone.
That said, the market could see a correction into the weekend. Should that occur, BTC may retest the trendline and short-term support around $110k.