Bitcoin Tests Key Fibonacci Resistance at $122,000 Ahead of Inflation Data
Bitcoin (BTC) is testing a critical resistance level around $122,056. This level corresponds to the 1.618% Fibonacci extension from previous market lows. The bulls are making a second attempt to break through this resistance after failing last month, leading to a price drop below $112,000.
A successful breach above this level could lead to a rally towards $140,000, which has substantial open interest on call options exceeding $3 billion. Conversely, failure to hold this level might indicate weak buying pressure and trigger a deeper correction.
U.S. Inflation Focus
- Upcoming U.S. inflation data expected to show a core CPI increase of 0.3% for July.
- June's core CPI rose by 0.2%.
- A higher-than-expected inflation report may cause market volatility but is unlikely to prevent the Fed from cutting rates in September.
- Analysts suggest the dollar’s downtrend may continue post-report, benefiting risk assets like cryptocurrencies.
- Weak jobs data has increased expectations for a Fed rate cut.