Bitcoin Faces Critical $120,000 Zone Amid Rising US Inflation and Mixed Interest Rate Cut Expectations

Key Points

1. The June US CPI report showed headline inflation rising to 2.7% year-over-year, the highest since February, with core CPI at 2.9%, slightly below expectations.

2. Bitcoin's recent rally to $118,400 was followed by a sharp retracement, highlighting volatility around the $119,250 to $120,700 resistance zone.

3. The $113,700 to $115,300 range aligns with the 200-day EMA and serves as dynamic support crucial for maintaining Bitcoin's broader uptrend.

4. Trader sentiment suggests Bitcoin may consolidate between $116,000 and $118,000 before attempting to reclaim higher levels, with $120,000 being a pivotal resistance.

5. Macroeconomic factors, including inflation data and Federal Reserve policy, remain critical influences on Bitcoin's price trajectory in the coming weeks.