Bitcoin digests US PPI win with $120K liquidity grab on bulls' radar

Key points:

• Bitcoin price targets include taking liquidity at around the $120,000 mark.

• US PPI inflation cools beyond expectations, providing relief after the hot CPI print the day prior.

• avoids a trip to a CME gap below $115,000.

Bitcoin maintained an overnight rebound at the Wall Street open Wednesday as US inflation data provided bulls some relief.

July Fed rate-cut odds absent despite cool PPI

Data from Cointelegraph Markets Pro and TradingView showed hovering at around $119,000.

Still up 0.5% on the day, the pair surfed promising Producer Price Index (PPI) results, which came in lower than anticipated across the board.

“On an unadjusted basis, the index for final demand rose 2.3 percent for the 12 months ended in June. In June, a 0.3-percent advance in prices for final demand goods offset a 0.1-percent decrease in the index for final demand services,” an official press release from the US Bureau of Labor Statistics (BLS) confirmed.

Despite rising 2.3%, PPI was still 0.2% lower than expected and 0.4% below the prior month’s increase.

“Producer inflation is cooling down again,” trading resource The Kobeissi Letter confirmed in part of a response on X. 

PPI thus strongly contrasted with the Consumer Price Index (CPI) print the day before, rising 2.7% year-on-year to reach the highest levels since February.

Some commentators suggested that the Federal Reserve would now be even less likely to lower interest rates, a blow to risk assets. Others, however, argued that the inflation numbers were nowhere near critical, especially amid the ongoing US trade war.

“Inflation continues too cool. The only one miss in CPI was due to Oil rising in June but it has come back down which will reflect next month,” crypto analyst Matthew Hyland continued following the PPI release.

“There is no high inflation like nearly all the experts claimed would be here by now.”

The latest data from CME Group’s FedWatch Tool nonetheless showed no hint of change in market sentiment regarding rate cuts at the Fed’s upcoming meeting on July 30.

Bitcoin sizes up nearby liquidity

Turning to BTC price action, market participants saw the potential for a fresh round of liquidity grabs.

$BTC High leverage liquidation fishing pic.twitter.com/gwtvWISTpb

As Cointelegraph continues to report, exchange order-book liquidity has formed low-timeframe price magnets throughout recent months.

On X, monitoring resource CoinGlass likewise flagged liquidity to the upside on the day, its data showing asks clustered between $119,500 and $120,500.

“Looks like Bitcoin is finding support just above its Daily CME Gap,” popular trader and analyst Rekt Capital added.

Rekt Capital referred to the “gap” left between closing and opening levels on CME Group’s Bitcoin futures markets, which typically draw price toward them after forming. The gap in question lies between $114,300 and $115,600.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.