Bitcoin Holds Above $117K Despite Inflation Fears as BTC Tests Critical Support

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• BTC that is currently being traded at $ 117,900 (+0.36% in 24 hours) • Bitcoin’s RSI at 52.33 signals Neutral momentum after recent withdrawal of all time highs • Higher than expected US Inflation given

What drives Bitcoin price today?

The BTC price experienced dramatic fluctuations this week and reached a new highest point of $ 124,514 before he withdrew to the current level around $ 117,900. The initial wave was fed by a weakening US dollar and growing expectations of the interest rate letings of the Federal Reserve, which created favorable conditions for risk assets such as Bitcoin.

However, the rally was of short duration as a higher than expected American wholesale inflation data that creates markets, which activated a sharp fall of 4% compared to the peak. This reaction emphasizes the continuous sensitivity of Bitcoin to macro -economic data, in particular inflation statistics that can influence the decisions of the FED policy.

Despite the pullback, institutional investments continue to offer underlying support for the BTC price. Company purchases and favorable legal developments under the current administration have maintained a positive momentum, whereby the successful NYSE debut of Crypto Exchange Bullish reaches a valuation of $ 10.2 billion that serves as a proof of renewed institutional interest.

The recent comments from the Treasury Secretary Scott Besent have added a low complexity to Bitcoin sentiment. Although it was initially not planning the government, his clarification about the remaining “open to the acquisition of more bitcoin via budget-neutral paths” policy flexibility that the approval in the long term of BTC could improve.

Bitcoin Technical Analysis: Mixed signals are emerging

Bitcoin technical analysis reveals a market for consolidation after recent volatility. The BTC RSI is currently at 52.33, so that it is placed firmly on neutral territory and neither overbought nor over -sold circumstances suggests. This neutral positioning offers room for movement in both directions based on upcoming catalysts.

The MACD histogram shows a bearish divergence on -60.56, which points to weakening Bullish Momentum despite the overall uptrend. The Bitcoin MACD line at 858.15 remains under the signal line on 918.71, which suggests that the Bearish pressure can continue to exist in the short term.

Travel averages paint a more constructive picture for Bitcoin’s technical analysis. The BTC price acts above the 20-day SMA ($ 116,937) and considerably above the 200-day SMA ($ 100.279), which confirms the Bullish structure in the long term, remains intact. The 7-day SMA at $ 119.006 is currently acting as immediate resistance.

The Bollinger tires from Bitcoin at 0.60 indicates that the price is in the upper part of the trade range, whereby the upper band offers $ 121,866 that offers important resistance and the bottom tire offers $ 112.007 that offers support.

Bitcoin -Prize levels: important support and resistance

Critical Bitcoin support levels come to $ 111,920 for immediate support, with stronger support at $ 105,100. These levels correspond to previous consolidation zones and represent areas where institutional buyers have arrived historically.

At the top, BTC resistance seems to be formidable at $ 124,474, which includes the recent high area of all time. Breaking above this level would probably push renewed FOMO -purchases and possibly Bitcoin to the next psychological milestone for $ 130,000.

The current trading range between $ 117,144 and $ 118,231 represents the direct battlefield for Bitcoin Bulls and Bears. A decisive break under $ 117,000 could accelerate sales for supporting $ 111,920, while a push above $ 118,500 can indicate renewed bullish momentum.

Do you have to buy BTC now? Risk-willing analysis

On the basis of Binance Spot market data, the current BTC/USDT-Setup presents a complex risk-familiar scenario for different trader types. Swing traders can regard the neutral BTC RSI and transferring stochastic measurements as potential input signals, in particular as Bitcoin support levels at $ 111,920 Hold firm.

Conservative investors must note that the position of Bitcoin above the most important advancing averages retains the bullish structure in the long term, making dollar costs average strategies may be attractive at the current level. The 24-hour ATR of $ 2,787 suggests persistent volatility, which requires careful position measurement.

Active traders must keep a close eye on the level of $ 117,000, because a interruption below can cause the stop loss and accelerate the deterioration to $ 111,920. Conversely, a recovery of $ 119,000 with volume is that the correction is completed.

Risk management remains crucial in view of the macro -economic uncertainties. The inflation data reaction shows the continuous correlation of Bitcoin with traditional risk assets during stress periods, making position-measuring and stop-loss placement essential for BTC positions.

Conclusion

The BTC price consolidation around $ 117,900 reflects a market that consumes recent profits, while conflicting signals are weighed from institutional adoption and inflation problems. With the RSI of Bitcoin in neutral territory and important support, the next 24-48 hours will probably determine whether this represents a healthy withdrawal or the start of a deeper correction. Traders must look forward to decisive breaks above $ 119,000 or less than $ 117,000 for directional instructions, while they can properly influence the attention of the upcoming economic data that can affect the expectations of the FED.

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