Bitcoin News Today: Bitcoin Rises 1.02% Amid U.S. Inflation Data and Fed Rate Cut Speculation

Bitcoin is currently trading at $119,745, reflecting a 1.02% increase in the last 24 hours, as investors assess recent U.S. inflation data. The July Consumer Price Index (CPI) increased by 0.2%, aligning with forecasts, while annual inflation remained at 2.7%. Core CPI, which excludes food and energy, rose by 0.3%, marking the largest monthly gain since January. This pushed the year-on-year core CPI to 3.1%, up from 2.9% in June [1].

The data has reinforced expectations for a potential Federal Reserve rate cut in September, following disappointing jobs figures and downward revisions in nonfarm payrolls. The Fed’s benchmark interest rate remains at 4.25%–4.50%, unchanged for five consecutive meetings [1]. However, concerns over the reliability of inflation data have emerged. The Bureau of Labor Statistics (BLS) has suspended CPI data collection in certain cities due to budget constraints, leading to a greater reliance on imputation methods for missing prices. In June, 35% of the data was imputed, up from 30% in May. The recent removal of BLS chief Erika McEntarfer by President Trump has further fueled scrutiny over the data’s political implications [1].

From a technical perspective, Bitcoin’s daily chart shows the price approaching a key resistance range between $117,335 (23.6% Fibonacci retracement) and $123,250 (swing high). The asset is forming an ascending trendline from the July lows, supported by the 50-day simple moving average at $114,396 [1]. Several indicators highlight the market dynamics at play: a breakout from a descending channel favors a bullish continuation; multiple upper-wick rejections near $120K suggest strong seller presence; the RSI at 61 indicates room for upward movement without overbought conditions; and the MACD histogram has turned green, signaling a potential bullish crossover [1].

Candlestick patterns in recent sessions suggest market indecision, pointing to the likelihood of a consolidation phase before a clear directional move. For traders, the technical setup offers two distinct strategies: a bullish breakout scenario where a daily close above $123,250 could propel prices toward $127,000 and $130,000, with a stop-loss advised below $117,350; and a bearish reversal scenario where a breakdown below the ascending trendline could target $113,650 and $110,675 [1]. Novice traders are encouraged to wait for confirmation of either a breakout or breakdown to avoid entering volatile, sideways markets prematurely [1].

The article also mentions a presale for a new project called Bitcoin Hyper ($HYPER), which aims to combine Bitcoin’s security with Solana’s speed via a Bitcoin-native Layer 2 solution powered by the Solana Virtual Machine (SVM). The project allows fast and low-cost smart contracts, dApps, and meme coin creation, with HYPER tokens currently available at $0.012625. However, this information appears unrelated to the broader narrative on Bitcoin’s price movement and is excluded from the core analysis [1].

Source: [1] Bitcoin Price Prediction: Key US Inflation Data Just Dropped – Where is BTC Going Next? (https://cryptonews.com/news/bitcoin-price-prediction-key-us-inflation-data-just-dropped-where-is-btc-going-next/)