Bitcoin Price Bounces Back Before Key US Inflation Data—What’s Next?
Bitcoin ($BTC) has staged a strong recovery, bouncing back above $82,000 after dropping below $78,000 on Sunday. The resurgence in price has sparked a broader market rally, with major altcoins such as Ethereum ($ETH), Binance Coin ($BNB), XRP, and Cardano ($ADA) climbing by up to 3%.
Traders are now closely watching key macroeconomic events, including the U.S. Consumer Price Index (CPI) and Producer Price Index (PPI) reports as well as the FOMC rate, which could introduce further volatility into the crypto market.
Key Factors Driving Bitcoin’s Price Recovery
1. Senator Lummis Reintroduces BITCOIN Act
BTC gained bullish momentum after U.S. Senator Cynthia Lummis reintroduced the BITCOIN Act, proposing that the U.S. government purchase 1 million BTC over five years as a strategic reserve. The bill underscores Bitcoin’s importance in financial leadership and could pave the way for institutional adoption.
Between 2025 and 2029, $6 billion in remittances from reserve banks would fund Bitcoin purchases, backed by the Federal Reserve’s gold certificates. Some analysts speculate that major altcoins like Ethereum and Solana could also be considered for reserve holdings in the future. The announcement fueled a rally in XRP, SOL, and ADA, as the crypto community welcomed a pro-Bitcoin stance from policymakers.
2. Key Support Levels Hold Strong
On-chain data from @intotheblock highlights two crucial Bitcoin support zones at $79,270 and $69,450. These levels represent significant accumulation points where a large number of BTC holdings exist. If BTC remains above $79,270, a potential push to all-time highs is possible. However, failure to hold this support could lead to a decline towards $69,450, which would be a critical level for maintaining bullish sentiment.
3. Institutional Activity Points to Bullish Momentum
A crypto whale recently deposited 1.735 million USDC into Hyperliquid, signaling a strong bullish bet on Bitcoin. Large inflows from high-net-worth investors often precede major price movements, indicating confidence in an impending price surge. Institutional demand, technical breakouts, and macroeconomic trends could drive BTC higher in the coming weeks.
Bitcoin Price Analysis: BTC Forms Bullish Ascending Triangle
Bitcoin is currently forming an ascending triangle pattern, a historically bullish formation signaling a potential breakout. The key resistance level to watch is $83,000. If BTC breaks above this level with strong volume, an 8% surge could propel prices toward the $89,000 – $90,000 range in the short term.
However, failure to breach resistance may result in a retest of support levels around $79,000 – $80,000 before another breakout attempt. The Relative Strength Index (RSI) on the daily chart stands at 40.10, rebounding from an oversold 30 level, indicating weakening bearish momentum and a potential shift toward bullish control.
Bitcoin Short-Term and Long-Term Outlook
Bitcoin Short-Term Prediction: Bitcoin must maintain its bullish structure above $79,270 to sustain its uptrend. A breakout above $83,000 could send BTC to $90,000 in the coming weeks.
Bitcoin Long-Term Prediction: If Bitcoin successfully holds above critical support levels, the uptrend could extend toward the $100,000 mark. Failure to maintain support could see a retest of $70,000 – $75,000 before another rally.
Will Bitcoin Surge to $90K?
Bitcoin’s bullish momentum is strengthening as macroeconomic factors, institutional demand, and key support levels align for a potential rally. The market is eyeing the $83,000 resistance, which, if broken, could trigger a surge toward $90,000. However, investors should remain cautious, as macroeconomic events like CPI and PPI data could introduce short-term volatility.
With Bitcoin reaffirming its long-term bullish structure, the next few weeks will be critical in determining whether BTC can break past resistance and set new highs. Traders should watch support at $79,270 and resistance at $83,000 for signs of the next big move in the crypto market.
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