Bitcoin News Today: Bitcoin Rises 4.51% on CPI Optimism Amid CME Gap Concerns

Bitcoin’s price action this week has remained tightly linked to the interplay between U.S. Consumer Price Index (CPI) data and the CME futures gap, as traders assess how these events might shape near-term volatility and trend direction. As of press time, BTC/USD traded near $122,000, up 2.29% in the past 24 hours and 4.51% in the last seven days, but still 2.39% below the prior month’s high [1]. The asset initially moved through $116,000 earlier in the week, maintaining bullish momentum and holding key support zones intact [1].

A notable CME gap between $117,000 and $119,000 emerged due to weekend dislocations in the futures market, a feature analysts believe could close during the week’s CPI-driven volatility [1]. Crypto Candy, a noted analyst, suggested that the release of the latest CPI data could be the catalyst to close the gap and trigger larger swings [1]. Historical patterns observed by data platforms like Ali Charts indicate that BTC has often dipped before CPI or Producer Price Index (PPI) releases, only to reverse higher post-announcement [1]. This dynamic played out earlier this year, with BTC reaching $122,000 before retracing toward $105,000 and $112,000. A similar rebound occurred in July after a low near $112,500 [1].

The combination of the CPI and PPI reports has heightened short-term uncertainty, with the CME gap becoming a focal point for traders. If the BTC price remains above $116,700, the short-term uptrend is expected to stay intact, with further resistance levels at $120,000 and the all-time high of $123,000 seen as potential turning points [1]. Analysts have also highlighted that a break above $125,000 could confirm a breakout and trigger large-scale short liquidations, with up to $14 billion in short positions at risk in the $125,000–$128,000 range [1]. In contrast, long liquidation levels flatten beyond current prices, suggesting less pressure from bullish traders [1].

On the macro side, traders continue to weigh the implications of the latest CPI data, which has boosted expectations for a Fed rate cut. According to market forecasts, the probability of a rate cut has increased to nearly 94% following the recent report, which signaled cooling inflation [2]. This has led some analysts to raise their price targets for Bitcoin to $137,000, with the $119,000 support level seen as a critical near-term benchmark [2].

Meanwhile, institutional buying has added to bullish sentiment. Over the past week, treasury companies have purchased Bitcoin for $61.4 million at an average price of $118,519 per coin, indicating continued accumulation and confidence in the asset’s macroeconomic outlook [9]. These actions, combined with the possibility of regulatory clarity and favorable macroeconomic conditions, have further supported the upward bias in Bitcoin’s price structure [9].

However, caution remains warranted. While the CPI data has improved the odds of a rate cut, the actual timing remains uncertain. A deviation from expectations—such as a stronger-than-anticipated CPI—could trigger a sharp correction. In such a scenario, an initial sell-off is expected, but historical data suggests a subsequent recovery [8]. Traders are advised to monitor the CME gap and Fed signals closely, as these will likely define Bitcoin’s path in the coming days [1].

Source:

[1] title1.............................(https://coinmarketcap.com/community/articles/689d70cbaf2f9e5806bbc15d/)

[2] title2.............................(https://cointelegraph.com/news/bitcoin-traders-target-137k-as-us-cpi-print-raises-fed-rate-cut-odds-to-94)

[9] title9.............................(https://www.fastbull.com/news-detail/institutions-are-still-loading-up-on-bitcoin-heres-4339520_0)