Bitcoin Price Target Rises to $137,000 Amid Increased Odds of Federal Reserve Rate Cut

• July US CPI remained at 2.7% year-over-year, boosting Fed rate cut expectations to 93.9% for September.

• Key support levels are identified between $117,650 and $115,650, with potential dips testing a CME gap at $95,000.

• Market expectations for a September Fed rate cut surged following the CPI data release, indicating a bullish outlook for Bitcoin.

Bitcoin price predictions are on the rise as inflation stabilizes, leading to increased expectations for a Federal Reserve rate cut. Stay informed with the latest updates.

What is Bitcoin’s price prediction for September?

Bitcoin’s price is expected to reach $130,000 in September, driven by positive market trends and expectations of a Federal Reserve rate cut. The recent CPI data supports this bullish outlook.

How does inflation impact Bitcoin’s price?

Inflation rates directly influence Bitcoin’s price as lower rates reduce the opportunity cost of holding the asset. The July US CPI data showed inflation steady at 2.7%, reinforcing the case for monetary easing and potentially boosting Bitcoin demand.

Frequently Asked Questions

What are the key support levels for Bitcoin?

Key support levels for Bitcoin are between $117,650 and $115,650, which traders should monitor closely for potential price movements.

Will Bitcoin reach $137,000?

Analysts suggest that Bitcoin could reach $137,000 if market conditions remain favorable and the Federal Reserve implements a rate cut.

Key Takeaways

• Inflation Stability: July CPI held steady at 2.7%, influencing market expectations.
• Rate Cut Likelihood: Fed rate cut expectations surged to 93.9% following CPI data.
• Price Support: Watch the $117,650 to $115,650 support zone for potential price action.

Conclusion

In summary, Bitcoin’s price is poised for potential growth, with targets reaching $130,000 and even $137,000, contingent on favorable economic indicators and Federal Reserve actions. Staying updated on inflation and market trends is crucial for investors.

Following the CPI data release, market expectations for a September Fed rate cut surged to 93.9%, according to CME FedWatch, as traders priced in a higher likelihood of monetary easing.

However, the in-line core CPI figure suggests that underlying price pressures persist, indicating the Fed may still require more evidence before taking action.

Looking ahead, next week’s Producer Price Index (PPI, 2.3% estimated) and Core PPI (2.5% estimated) could be key. A softer-than-expected print could confirm a bullish macro setup for Bitcoin, reinforcing lower rate expectations and boosting demand for risk assets like Bitcoin.

On the technical front, a bullish flag pattern on the daily chart recently broke to the upside. The current pullback could be a retest before continuation toward the primary target of $130,000.

Notably, technical analyst Titan of Crypto projects a similar bullish scenario, eyeing $137,000 based on a descending trendline breakout seen on Sunday.

However, failure to reclaim $120,000 could invite short-term downside pressure. Immediate support lies in the $117,650–$115,650 zone. This key support area also coincides with the CME gap formed over the weekend, making it a key zone for traders to watch.