Bitcoin has ranged for 230 days and may rise 50% if inflation data triggers a Federal Reserve rate cut.
The July 15 US CPI report could influence a major breakout above the $112,000 resistance level for Bitcoin.
Strong job data pressures the Fed, but easing inflation could still open a path to monetary policy adjustment.
Bitcoin continues to trade within a narrow band of $109,000 to $112,000 as the market looks ahead to the upcoming US inflation data scheduled for July 15. This figure is being closely watched as it could determine whether the Federal Reserve introduces a long-anticipated interest rate cut.
On Friday, the US posted growth in jobs, beating the predictions. The economy created 147,000 non-farm payrolls, and this exceeded the estimates of 110,000. In between, the rate of unemployment remained at 4.1%, which is slightly better than the anticipated 4.3%. Such figures indicate the possibility of a robust labor market, something that will usually discourage the instant curtailment of the rates. Bitcoin responded to the report slightly and moved down to about 109,000, down from 110,000.
Inflation Print Could Open Door for Rate Cut
Despite the robust jobs data, market analysts are pointing to inflation as the deciding factor in the Fed’s next move. If the July 15 Consumer Price Index (CPI) report shows inflation falling to around 2.3 to 2.4%, the Federal Reserve may still consider a rate reduction. A rate cut would be seen as a positive signal for risk assets such as Bitcoin, which historically responds well to looser monetary policy.
On-chain data experts believe that Bitcoin is now witnessing a similar trend recorded in the past when consolidation periods lasted long. In cases when Bitcoin has moved in a narrow range, especially over prolonged durations of time, as in the current 230-day period, it has traditionally been followed by price strikes of about 50% afterwards. Provided that this trend is generally repeated, then in the short term, Bitcoin may climb to the level of approximately 160,000 dollars.
Altcoin and Ethereum start to show indications of strength
It is during this period of consolidation that altcoins have performed relatively well, with some of them gaining positive momentum, Ethereum being one of them. The price of Ethereum rose to over 2,625, which meant there was increasing investor confidence.
Provided that Bitcoin manages to push through its resistance points, the rest of the digital assets will eventually follow, enhancing the sentiments of the entire market.
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