Overview

Bitcoin bulls are making a strong push, testing a significant resistance point as they eye U.S. inflation data. The cryptocurrency recently peaked at $122,056, marking a crucial moment influenced by the 1.618% Fibonacci extension—a level significant in both mathematical and financial contexts.

Key Points:

• The price crossed the Fibonacci extension threshold and may rally if it maintains this upward momentum.
• Should it remain above this critical point, projections suggest a potential price surge toward $140,000, fueled by open interest in call options suggesting widespread bullish sentiment.
• Analysts predict the inflation report could bring market volatility; however, it likely won’t stop the Federal Reserve from cutting rates.

What to Watch For:

“With U.S. interest rates persistently low, we anticipate ongoing market reactions to potential inflationary measures. Contrary to worries, a Fed rate cut remains an option despite any inflation uptick, benefiting risk assets such as cryptocurrencies,” explained Marc Chandler, Chief Market Strategist at Bannockburn Global Forex.

Conclusion

Bitcoin’s ongoing contest with key resistance points reflects broader market sentiments. The bulls face a critical moment as they navigate potential volatility ahead of the inflation report.