$BTC bullish momentum is accelerating after fresh US inflation data strengthened the case for a Federal Reserve rate cut in September. The Consumer Price Index (CPI) held steady at 2.7% year-over-year, below the 2.8% forecast, increasing expectations for a rate cut.
Key Developments:
- Rate Cut Expectations: Market expectations for a September rate cut surged to nearly 94% following the data release.
- Macro Tailwinds: A softer monetary policy environment could open the door for sustained upside in $BTC
- Technical Picture: Bitcoin's price is eyeing a breakout above $120,000, a critical psychological and technical resistance. A daily close above this level could trigger the next leg higher toward $130,000-$137,000.
Key Levels to Watch:
- Immediate Resistance: $120,000
- Primary Upside Target: $130,000-$137,000
- Support Zone: $117,650-$115,650
- Deeper Risk: $95,000 (CME gap)
With cooling inflation and rising rate cut expectations, the broader setup points toward continued strength into September.
