Bitcoin News Today: Bitcoin Awaits August CPI as Price Hovers Near $120K Ahead of Key Inflation Data

Bitcoin’s price action ahead of the U.S. CPI report on August 12 has drawn heightened attention from traders and analysts, who are closely monitoring whether inflationary data will unlock a new all-time high or prompt a pullback toward $110,000. BTC has been consolidating between $118,000 and $122,000 following a strong weekend performance, as market participants weigh the implications of the upcoming macroeconomic release [1].

Market sentiment appears cautious, with derivatives desks warning that a higher-than-expected CPI could dampen expectations for a Federal Reserve rate cut and weigh on risk assets, including Bitcoin. Meanwhile, ETF inflows have improved since early August, shifting from multi-day outflows to a net inflow of approximately $769 million across three sessions, signaling that dip-buying remains active [1]. This tug-of-war between bullish and bearish forces has led to alternating Bitcoin price predictions—ranging from a potential breakout above $123,000 to a potential pullback toward $110,000 support [1].

Key levels are being closely watched by traders. The $123,000–$134,000 range represents resistance, with the previous peak near $123,218 acting as a critical threshold. Conversely, the $112,000 and $110,000 levels are considered key support zones, with market desks flagging a potential retest if bearish momentum gains control. The August CPI report is viewed as the primary catalyst that could dictate the near-term direction of Bitcoin [1].

Macro crosswinds suggest that the CPI reading will heavily influence the Fed’s policy path. Street consensus leans toward a moderate monthly increase, with sticky core inflation and potential tariff-related volatility remaining wild cards. A hotter-than-expected CPI could delay the widely anticipated rate cut in September, while a cooler report may shift the narrative to a “soft patch, bigger cut” scenario, increasing market volatility in either case [1].

According to technical analysts, a favorable CPI reading could extend the August momentum into the $130,000–$134,000 range, while a high print could send Bitcoin tumbling toward $112,000–$110,000. This short-term Bitcoin price projection aligns with the hedging tendencies observed in the options market and the continued positive flow into ETFs [1].

For investors and traders, the advice is to remain cautious around the CPI window. Strategies such as staggered entries and clearly defined stop-loss levels near $112,000 are recommended for those fading the rise, while adding on strength should be considered only after a strong daily close above historical highs. For long-term investors, scaling in on weakness remains a viable strategy, especially as the policy environment continues to favor easing [1].

The base-case Bitcoin price prediction assumes CPI remains near consensus, keeping the door open for a September rate cut and pushing BTC beyond $123,000 toward $130,000 in the following weeks. The bear case, however, involves a hotter core CPI that would push back Bitcoin toward $112,000–$110,000. In both scenarios, the medium-term bullish trend is expected to persist, contingent on the inflation trajectory [1].

In summary, Bitcoin is in a critical holding pattern ahead of the CPI report, with the data expected to act as the fulcrum for the next leg of the trend. Either a breakout above $123,000 or a pullback toward $110,000 would preserve the overall cycle structure, with policy decisions and market flows playing a decisive role [1].

Source: [1] New All-Time High or $110K Pullback? Bitcoin Awaits Critical CPI Report (https://thebitjournal.com/new-ath-or-110k-pullback-bitcoin-price-awaits-cpi-report/)