Bitcoin price started a fresh increase from the $105,200 zone. BTC is now consolidating and might struggle to continue higher above the $110,000 resistance.

• Bitcoin started a fresh increase above the $108,000 zone.
• The price is trading above $107,500 and the 100 hourly Simple moving average.
• There was a break above a bearish trend line with resistance at $106,300 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair could start a fresh increase if it stays above the $107,000 zone.

Bitcoin Price Regains Traction

Bitcoin price remained supported above the $105,000 level and started a fresh increase. BTC cleared many hurdles near $106,200 to start a decent increase.

There was a break above a bearish trend line with resistance at $106,300 on the hourly chart of the BTC/USD pair. The pair pumped above the $107,500 resistance level. It cleared the 76.4% Fib retracement level of the downward move from the $108,792 swing high to the $105,116 low.

Finally, the price surged toward the $110,000 level. It tested the 1.236 Fib extension level of the downward move from the $108,792 swing high to the $105,116 low.

Bitcoin is now trading above $108,000 and the 100 hourly Simple moving average. On the upside, immediate resistance is near the $109,400 level. The first key resistance is near the $110,000 level. A close above the $110,000 resistance might send the price further higher. In the stated case, the price could rise and test the $112,000 resistance level. Any more gains might send the price toward the $113,200 level.

Downside Correction In BTC?

If Bitcoin fails to rise above the $110,000 resistance zone, it could start another decline. Immediate support is near the $108,750 level. The first major support is near the $108,000 level.

The next support is now near the $107,200 zone. Any more losses might send the price toward the $106,500 support in the near term. The main support sits at $105,000, below which BTC might continue to move down.

Technical indicators:

Hourly MACD – The MACD is now losing pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.

Major Support Levels – $108,000, followed by $107,200.

Major Resistance Levels – $110,000 and $112,000.

Federal Reserve Governor Lisa Cook sees a soft landing amid cooling inflation and labor market in the US, hinting at rate cuts starting soon by the Federal Reserve. Fed Governor Cook said inflation should continue to fall without significant rise in the unemployment rate. Fed rate cuts to trigger a major rally in stock markets and Bitcoin price.

Fed Governor Lisa Cook Upbeat on Soft Landing

At the Australian Conference of Economists 2024, US Federal Reserve Governor Lisa Cook talked about monetary policy response to the pandemic, rise and fall of inflation in recent years, and current common monetary policy challenges. Cook pointed out that the current data is evident for Fed rate cuts, aligning with other central banks on the pivot.

“My baseline forecast (and that of many outside observers) is that inflation will continue to move toward target over time, without much further rise in unemployment.”

Fed Chair Jerome Powell in a testimony also revealed the FOMC is focusing more labor market given the recent cooling CPI, PCE, and PPI inflation data.

Traders and Wall Street banks are pricing in a 25 bps rate cut in September. Also, CME FedWatch shows a rise in probability to 70%, from 46% a month ago, for a 25 bps rate cut on September 18. The data indicates two Fed rate cuts this year.

The market expects the U.S. Bureau of Labor Statistics to announce a fall in annual CPI inflation rate to 3.1%, as reported earlier by CoinGape.

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Bitcoin to Start Rallying After CPI

Bitcoin is bottoming out and market participants have already started buying, according to several factors. Traders expect BTC price to cross above $60,000 in case of a favorable CPI release.

CoinShares reported that institutional investors across the world have started buying Bitcoin and financial expert Robert Kiyosaki urged people to buy more BTC and gold as traditional investors have also started buying.

Spot Bitcoin ETFs in the U.S. continue to record inflows this week, with more than $800 million net inflow in the last four days. CoinGape also reported several traditional investment firms such as Fiduciary Alliance are pouring money into ETFs such as BlackRock Bitcoin ETF and GBTC.

10x Research predicts BTC price is bottoming and expects a surge in prices after CPI data today based on historical BTC price action in response to CPI.

“We anticipated that a rate cut rally could push Bitcoin near $60,000. Yesterday, Bitcoin rallied to $59,350 due to short covering ahead of the CPI, fulfilling our rally expectations,” said 10x Research CEO Markus Thielen.

BTC price currently trades near $58,000 after hitting a 24-hour high of $59,350. The price is down 1%, but still higher than the 24-hour low of 57,120. Furthermore, the trading volume has decreased by 13% as traders await key inflation data. Buying in derivatives markets are also low in the last 24 hours and total BTC futures remained at $28.90 billion.

Also Read: ‘Biden Should Fire Gary Gensler’ Quote Mark Cuban And Crypto Roundtable Attendees

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Varinder has 10 years of experience in the Fintech sector, with over 5 years dedicated to blockchain, crypto, and Web3 developments. Being a technology enthusiast and analytical thinker, he has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers. With CoinGape Media, Varinder believes in the huge potential of these innovative future technologies. He is currently covering all the latest updates and developments in the crypto industry.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.