Bitcoin (BTC) Climbs Steadily as US Inflation Data Looms: Price Analysis

Bitcoin's steady ascent continues as traders brace for pivotal inflation data—proving once again that crypto moves faster than Fed printers.

Market Momentum Builds

BTC's grinding upward trajectory defies traditional market jitters, showcasing digital gold's resilience against macroeconomic uncertainty. No panic selling here—just calculated positioning ahead of potentially market-moving numbers.

Inflation's Shadow Looms

All eyes turn to upcoming US inflation metrics, the perennial catalyst for volatility across both traditional and digital asset classes. Bitcoin's recent performance suggests traders are betting on favorable readings—or at least pricing in the Fed's usual reaction lag.

Technical Strength Prevails

The steady climb demonstrates technical robustness, with support levels holding firm despite the looming data risk. This isn't speculative frenzy—it's measured accumulation by players who remember what happened last time inflation surprised.

Because nothing says 'hedge against monetary policy' like an asset that swings 10% on a single CPI print—but hey, at least it's not another bank bailout.

US Inflation figures allowing, Bitcoin set to continue its rise

After a small dip outside of the ascending channel, the $BTC price is back inside on Wednesday and challenging the $112,000 resistance once again. This level has been surpassed on no less than 4 occasions so far in the last week, so it wouldn’t be a surprise to see the bulls push the price above this horizontal level once more.

In the world of traditional finance in the US, the monthly PPI figures are due out on Wednesday, and then on Thursday, CPI data is released. The Month on month PPI (Producer Price Index) forecast is set to beat the previous month handily, by reducing from 0.9 to 0.3, while the CPI (Consumer Price Index) forecast is for a slight increase from 0.2 to 0.3 m/m.

Unless these figures come in a lot worse than forecast, the Federal Reserve should feel bold enough to make the expected rate cut at next week’s FOMC meeting. Risk assets such as gold and Bitcoin could continue to rise.

$BTC price continues to rise inside ascending channel

Source: TradingView

The current ascending channel continues to lengthen as the $BTC price maintains inside its trendline boundaries. The price is just now pushing through the $112,000 resistance, and if it confirms above, this could be the last time it drops below, given that the ascending channel will soon leave this level behind. 

At the bottom of the chart, the Stochastic RSI indicators are showing a recent cross up. As the indicators rise back to the top, this can signal the momentum to perhaps help push the $BTC price through the resistance and perhaps even to the top of the channel.

Bullish ascending triangle 

Source: TradingView

Moving out into the daily time frame one can observe that an ascending triangle looks to be forming. This triangle is formed by the bottom trendline of the channel and the $113,500 horizontal resistance. This is a very bullish pattern and in most cases price action WOULD be expected to break out to the upside. 

At the bottom of the chart, the RSI reveals that the indicator line is right at the 50.00 mid-point. If one looks back at previous times the price has broken through or bounced from this level, it can be seen that it usually signals a strong upside price impulse. 

DXY set to go lower

Source: TradingView

Rather than look at the weekly chart for $BTC, it is perhaps more informative to look at the Dollar Index (DXY). It can be seen that the DXY was rejected again from a descending trendline that goes all the way back to 1985. 

Recently, the DXY has also dropped below the 100 level, turning this into resistance. The DXY is now holding under the 0.618 Fibonacci, so it might be expected that it carries on down to the 0.786 Fibonacci at 94.7.

Could the dollar drop out of a multi-year triangle pattern?

Source: TradingView

The two week chart shows the entirety of that downtrend for the DXY. It can also be seen that the index is hovering perilously close to the bottom of a huge, multi-year triangle pattern. If the dollar drops under this pattern bitcoin could experience an explosive final stage to its bull run.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.