Key points:
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Bitcoin price action whipsaws around a cooler-than-expected CPI print.
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Optimism on risk assets increases, with the Federal Reserve seen continuing interest-rate cuts through 2026.
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BTC finds resistance at $112,000, as key support reclaim levels emerge.
Bitcoin (BTC) saw fresh volatility Friday as US inflation data sent stocks to new all-time highs.
BTC/USD one-hour chart. Source: Cointelegraph/TradingViewCPI relief fuels new highs for US stocks
Data from Cointelegraph Markets Pro and TradingView showed BTC price gains tapping $112,000 before reversing at the Wall Street open.
The September print of the Consumer Price Index (CPI) came in below expectations across the board — a key tailwind for crypto and risk assets.
Both the CPI and core CPI were 0.1% below their anticipated levels, circling 3%, according to an official release from the US Bureau of Labor Statistics (BLS).
CPI 12-month % change. Source: BLSReacting to the news, The Kobeissi Letter, a trading resource, said that the figure “paves the path for another Fed rate cut next week.”
“This report was published as a ‘rare exception’ during the US government shut down,” it noted, as the S&P 500 surged to fresh record levels.
CME Group’s FedWatch Tool, which tracks market odds of interest-rate moves by the Federal Reserve, overwhelmingly favored a 0.25% reduction on Oct. 29.
Fed target rate probabilities for October FOMC meeting (screenshot). Source: CME Group“Financial conditions remain loose overall and are receiving another boost as the Federal Reserve is expected to cut interest rates at its two remaining meetings this year,” trading resource Mosaic Asset Company wrote in its latest analysis.
BTC/USD vs. S&P 500 one-day chart. Source: Cointelegraph/TradingViewBTC price struggles despite CPI relief
Bitcoin still had to contend with sell-side pressure at the US market open on the day.
Related: Worst Uptober ever? Bitcoin price risks first ‘red’ October in years
Traders remained on edge, with X commentator Exitpump warning that little support was in place below the spot price.
Trader Diego White described exchange order-book liquidity conditions as “heavy,” as data from CoinGlass showed price approaching a new ladder of bids around $110,000.
BTC liquidation heatmap. Source: CoinGlassCaleb Franzen, creator of financial research resource Cubic Analytics, flagged three exponential moving averages (EMAs) that were now essential to reclaim as support.
“$BTC is rebounding on the 200-day EMA, so far. But now it needs to break & close above the 21/55, which worked as resistance during the retest earlier this week,” he told X followers.
BTC/USD one-day chart with 21, 55, 200 EMAs. Source: Caleb Franzen/XThis 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.
Source: https://cointelegraph.com/news/bitcoin-spikes-112k-soft-us-cpi-data-sp-500-hits-record-high?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
