Essential Insights
Bitcoin has successfully regained the $114,000 threshold and is now aiming for the $117,000 resistance point.
The core Producer Price Index (PPI) experienced a 0.1% decline month-over-month, heightening expectations for a potential Federal Reserve rate cut next week.
Bitcoin Reclaims $114k
The cryptocurrency sector continues to enjoy a strong start this week, with Bitcoin and other major cryptocurrencies showing positive gains. On Wednesday, Bitcoin managed to reclaim the $114k mark after witnessing a 3% increase in its value over recent days.
This favorable performance follows the release of PPI data on Wednesday. The core Producer Price Index (PPI), which excludes food and energy prices, fell by 0.1% month-over-month—lower than analysts’ predictions of a 0.3% rise. Yearly core inflation decreased from July’s revised figure of 3.4% to 2.8%.
The drop in inflation rates may open doors for the Fed to implement interest rate cuts next week. The Consumer Price Index (CPI) data will be released on Tuesday and could further solidify the Fed’s decision-making process.
In correspondence with Coinjournal, Javier Rodriguez-Alarcón, Chief Investment Officer at XBTO, indicated that an interest rate reduction by the Fed could trigger Bitcoin’s next significant surge. He noted that:
The macroeconomic environment is also favorable: investors are largely anticipating that the Federal Reserve will initiate rate cuts this month; this has boosted confidence across risk assets while reinforcing Bitcoin’s position as an effective hedge against economic uncertainty.
Simultaneously, the SEC has introduced more crypto-friendly regulatory measures while Cboe prepares to launch new long-term futures contracts for both Bitcoin and Ethereum—illustrating how policy developments are aligning with market infrastructure enhancements.
BTC Aims for $117k Resistance Level
The BTC/USD four-hour chart indicates bullish momentum as Bitcoin has shown impressive performance recently. Momentum indicators are also leaning towards bullishness, suggesting BTC might be gearing up for another breakout phase.
An RSI reading of 62 indicates strong buying activity is present while MACD lines remain within bullish territory. Should this upward trend persist, BTC may surpass its first significant resistance level at approximately $117424 within hours or days ahead—potentially allowing it to reach back toward $119k during an extended rally period..
However , there might be some market corrections as we approach weekend trading . If such corrections occur , BTC could revisit support levels around TLQ or even dip down towards$110K in short term .