Bitcoin dipped after the release of the U.S. Consumer Price Index (CPI) for June, which confirmed that inflation remains sticky, tempering investors' interest rate cut hopes and leaving Bitcoin at a critical juncture below $120,000 . The Consumer Price Index (CPI) is compiled by the Hellenic Statistical Authority (ELSTAT) and is used to measure changes in the general level of prices of goods and services that make up the "consumer basket" .
Headline CPI hit 2.7% year-over-year, the highest since February, while core CPI also ticked higher to 2.9% annually . Overall CPI rose 0.3% month-over-month, the sharpest gain in five months . The data underscores that inflation remains sticky, especially in key segments like food and transportation .
Following the release of the CPI data, the US Dollar Index (DXY) sharply rose . The expected core figures offered some relief, but rising headline inflation dampened hopes of a dovish pivot at the July Federal Open Market Committee meeting .
Technical analysis shows that Bitcoin is in a rising trend channel in the medium long term . This shows that investors over time have bought the currency at higher prices and indicates good development for the currency . The price has risen strongly since the positive signal from the rectangle formation at the break through resistance at 107710 .
However, one trader warned of a potential “pump and dump” ploy to trap late buyers at higher levels . Data from Cointelegraph Markets Pro and TradingView showed BTC/USD circling $121,000 . New all-time highs near $123,250 had capped a blistering rally earlier today, with Bitcoin still up over 10% in a week .
Order-book liquidity manipulation has played a key role in short-term BTC price action in recent months, with large-volume traders shifting bids and asks around to attract price in a certain direction .
Despite the dip, some analysts remain bullish on Bitcoin in the longer term . QCP suggested that traders may wish to hedge against low-timeframe volatility “while maintaining a longer-term bullish outlook .”