Bitcoin price prediction:
Bitcoin made headlines this week after reaching a new all-time high of $124,474 on Thursday. However, the excitement didn’t last long as the price dropped by 4% on the same day, settling near $118,900 on Friday. This sudden move caught many traders’ attention and has become a key focus in recent crypto analysis.
The strong start to the week came after positive U.S. Consumer Price Index (CPI) data was released on Tuesday. The CPI numbers were slightly lower than expected, fueling hopes for a September Federal Reserve rate cut. Some market analysts, including U.S. Treasury Secretary Scott Bessent, even suggested a larger 50-basis-point cut. This optimism boosted risk assets like Bitcoin and supported a bullish crypto price prediction for the short term.
However, the bullish mood was shaken on Thursday when the U.S. Producer Price Index (PPI) report came in much higher than expected. This indicated that inflation pressures might still be growing, which reduced hopes for an aggressive Fed rate cut. The shift in sentiment caused selling pressure across the market and pushed Bitcoin below $118,000, raising doubts about the near-term bitcoin price prediction.
From a technical perspective, Bitcoin’s outlook is still mixed but leaning positive. The Relative Strength Index (RSI) is currently at 53, which is above the neutral level of 50, showing that buyers still have some momentum. Additionally, the Moving Average Convergence Divergence (MACD) indicator flashed a bullish crossover earlier in the week, which is often considered a buy signal in crypto analysis.
If Bitcoin can hold above its key support level of $116,000, traders believe it has the potential to retest its record high of $124,474. A successful breakout above that level could open the door for further gains, making a bullish bitcoin price prediction more likely. On the other hand, if BTC closes below $116,000, the next major support sits at $111,980, where buyers may step in again.
In conclusion, the recent market swings show how sensitive Bitcoin is to U.S. economic data and investor sentiment. While short-term moves remain unpredictable, ongoing crypto analysis suggests that as long as Bitcoin stays above $116,000, the long-term trend could still favor the bulls. Traders will be watching both economic reports and technical indicators closely to shape their next crypto price prediction.
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