Bitcoin experienced a significant surge on Wednesday, briefly hitting $114,000 in response to unexpectedly favorable Producer Price Index (PPI) data. This uptick has ignited discussions about the sustainability of the current rally amid key economic indicators on the horizon.
Prominent analyst Kevin shared insights in a recent Patreon post, emphasizing the importance of focusing on critical price levels in both short and long-term scenarios instead of getting lost in detailed chart analyses. He pointed out that Bitcoin’s major support levels are at $110,600, $107,500–$106,800, and $104,000–$100,000. Conversely, the primary resistance levels are set at $112,775, $113,700–$114,600, $116,000, and $118,300. Kevin anticipates that Bitcoin will likely trade within the range of $106,800 to $118,300 unless there are unexpected developments in the upcoming Consumer Price Index (CPI) report or the Federal Open Market Committee (FOMC) meeting.
The analyst also suggested that if inflation remains stable or decreases further and the Federal Reserve adopts a dovish stance, this could pave the way for an extended bullish phase, particularly driven by altcoins. Higher time frame analyses show altcoins gearing up for a potential rally; however, a significant market-wide upswing would require Bitcoin to surpass the $120,000 to $125,000 range and Ethereum to break its all-time high.
In terms of strategy, Kevin has advised a cautious approach, recommending profit-taking and maintaining risk-managed positions until the critical resistance levels are breached. The positive PPI report, which showed a 0.1% drop month-over-month against an anticipated 0.3% increase and an annual change of 2.6% compared to a forecasted 3.3%, has set an optimistic tone for investors.
Daan Crypto Trades highlighted that Bitcoin cleared liquidity above $114,000 following the PPI release and issued a warning that the upcoming CPI report could lead to another surge in market volatility. Recent data from Coinglass revealed that Bitcoin liquidations totaled $37.95 million within the past 24 hours, with short liquidations accounting for $34.96 million as traders liquidated their positions following the sharp price increase.
The financial community remains alert as these key economic indicators continue to shape market dynamics, with many holding their breath for the next report.
