Bitcoin Bulls Charge Toward $122K Fibonacci Golden Ratio as Inflation Data Sparks Market Frenzy

Crypto traders are betting big on Bitcoin's next leg up—straight through the Fibonacci golden ratio at $122K. All eyes now turn to inflation data that could make or break the rally.

The Setup: A Technical Perfect Storm

BTC's chart paints a textbook bullish pattern: consecutive higher lows, compressed volatility, and that tantalizing Fibonacci level acting like a magnet for momentum traders. One whale's limit order could trigger a cascade.

Inflation: The Ultimate Catalyst

Today's CPI print isn't just economic data—it's rocket fuel or a bucket of ice water. Traders are already positioned for a 'goldilocks' number that keeps rate cuts on the table without spooking markets. Because nothing says 'healthy economy' like praying for bad data, right?

The Trade: High Stakes Poker

Options markets show massive open interest at $125K calls, while derivatives traders keep leverage cranked to 11. This isn't investing—it's a high-speed game of chicken with the Fed's printer.

Watch the close above $122K. Break it, and we're looking at a moonshot. Fail, and well... at least the memecoins will still pump.

A successful hold above the "golden ratio" would cement expectations for a rally toward $140,000, the most popular call option strike on the crypto derivatives exchange Deribit. As of writing, the $140,000 call boasted a notional open interest of over $3 billion, according to data source Deribit Metrics.

However, if the bulls fail to hold their ground for a second time, it WOULD suggest the buying pressure is insufficient, potentially yielding a deeper correction.

As of writing, BTC changed hands at $122,000, having hit a high of $122,171 during the early Asian trading hours, according to CoinDesk data.

Focus on U.S. inflation

Data due Tuesday is expected to show that the impact of Trump's tariffs crept into inflation in July, lifting price pressures in the economy.

The Core consumer price index, which strips out volatile food and energy costs, is likely to have risen 0.3% in July, according to the median projection in a Bloomberg survey of economists. In June, the core CPI increased by 0.2% from the previous month.

A hotter-than-expected inflation print may trigger market volatility, but it is unlikely to deter the Fed from cutting rates in September, according to Marc Chandler, chief market strategist at Bannockburn Global Forex. In other words, the dollar's downtrend could continue after the CPI report, boding well for risk assets, including cryptocurrencies.

"With U.S. interest rates still at the lower end of their ranges, despite a soft reception at the U.S. refunding last week, we suspect the market is vulnerable to what may prove to be the third consecutive monthly increase in the year-over-year headline and CORE CPI. After the report, we suspect the dollar's downtrend can resume," Chandler said in the market report on Sunday.

He explained that July's weak jobs report was a significant turning point that raised bets for a Fed rate cut, ending the dollar's counter-trend recovery rally.