Bitcoin’s price trajectory faces critical technical tests as market sentiment responds to U.S. inflation data, with the $120,000 resistance level emerging as a decisive battleground. Economic uncertainty continues to anchor cryptocurrency markets to traditional financial indicators, driving heightened volatility.
The latest U.S. Consumer Price Index report recorded headline inflation at 2.7% year-over-year—the highest since February—while core CPI measured 2.9%, slightly below expectations. This inflationary backdrop coincides with Bitcoin’s sharp retreat from recent highs around $118,400, highlighting persistent resistance between $119,250 and $120,700.
Technical analysis identifies the $113,700 to $115,300 range as crucial dynamic support, reinforced by alignment with Bitcoin’s 200-day exponential moving average. Market observers anticipate potential consolidation between $116,000 and $118,000 before further attempts to breach the psychologically pivotal $120,000 barrier.
Mid-term price direction appears heavily contingent on macroeconomic developments, particularly Federal Reserve policy decisions and upcoming inflation metrics. Traders continue monitoring these fundamental indicators for signals that could determine Bitcoin’s ability to sustain its broader bullish trend.