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.BTC/USD avoids a trip to a CME gap below $115,000.Bitcoin (BTC) maintained an overnight rebound at the Wall Street open Wednesday as US inflation data provided bulls some relief.BTC/USD 1-hour chart.
Source: Cointelegraph/TradingViewJuly Fed rate-cut odds absent despite cool PPIData from Cointelegraph Markets Pro and TradingView showed BTC/USD 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.US PPI 1-month % change.
Source: BLSDespite rising 2.3%, PPI was still 0.2% lower than expected and 0.4% below the prior months 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 to 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.Fed target rate probabilities (screenshot).
Source: CME GroupThe latest data from CME Groups FedWatch Tool nonetheless showed no hint of change in market sentiment regarding rate cuts at the Feds upcoming meeting on July 30.Bitcoin sizes up nearby liquidityTurning to BTC price action, market participants saw the potential for a fresh round of liquidity grabs.Related: Bitcoin ETF inflows show institutions doubled down on BTC at $116KAs 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.BTC liquidation heatmap (screenshot).
Source: CoinGlassLooks 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 Groups Bitcoin futures markets, which typically draw price toward them after forming.
The gap in question lies between $114,300 and $115,600.CME Group Bitcoin futures one-day chart.
Source: Rekt Capital/XThis article does not contain investment advice or recommendations.
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