Austen’s Take on Bitcoin’s Soaring Success: A Tale of Inflation and Speculation 📈💰

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It is a truth universally acknowledged, that a single man in possession of a good fortune must be in want of a wife; however, in the world of finance, a cryptocurrency in possession of favorable economic data must be in want of soaring prices. Thus, it was with great astonishment and no small amount of delight that the financial community beheld the 0.1% decline in the August Producer Price Index (PPI), which enabled the illustrious Bitcoin (BTC) to push through resistance and maintain its lofty position above $114,000 early on Thursday. The Consumer Price Index (CPI) figures, due to be released today, are forecasted to show a slight rise. One can only speculate how such a revelation might affect our dear BTC. 😅

Market focus shifts to the CPI release later today

The PPI reading for August, which came in at -0.1%, was indeed a delightful surprise for the US economy. Analysts had anticipated a modest increase of +0.3%, making this a truly positive development, indicating that the tariffs had yet to exert their full influence. On Thursday, all eyes turn to the Consumer Price Index (CPI) release, where the consensus is also for a +0.3% rise in August. With the Federal Reserve poised to consider raising interest rates next week, it is crucial that this figure does not exceed expectations, lest it cause a stir in the markets and, consequently, in the tender heart of Bitcoin. Should the market suffer from a negative inflation report, Bitcoin is likely to feel the pinch as well. Yet, with the prospect of rate cuts on the horizon, this downturn may prove to be but a fleeting moment of distress. 🌸

$113,500 becomes new horizontal support

Examining the short-term chart, one observes that the $BTC price continues its ascent, adhering to the ascending channel. With $113,500 now serving as a firm support, the current upward momentum may well continue towards the next resistance at $115,700. This fortuitously aligns with the 0.5 Fibonacci level, and the upper boundary of the channel provides additional resistance just above this point. To achieve a more significant advance, the formidable resistance at $117,500 must be overcome. This is indeed a critical juncture, and the only other notable resistance before reaching the all-time high lies at $120,000. 🏆

Breakout of ascending triangle

The daily chart reveals an ascending triangle from which the $BTC price broke free on Wednesday, a development that seems to be solidifying on Thursday. Given that the breakout line also serves as robust horizontal support, it is reasonable to anticipate further gains. The measured move could propel the price to just beneath the $120,000 horizontal resistance. At the chart’s base, the RSI shows a gradual upward trend. Should the indicator line breach the downtrend line, it would likely correspond to a breakout in the price action, potentially at either the $117,500 or the $120,000 horizontal resistances. 📊

Have the last few weeks of price action formed a bull flag?

Zooming out to the weekly time frame, the recent weeks of price action have been neatly contained within what could be interpreted as a bull flag. Though the price movements have been somewhat erratic, making the formation less obvious, it remains a subject of debate whether this pattern holds true. If it does, a breakout is imminent, either this week or the next. The pole of the flag, extending from the base of the preceding smaller bull flag, suggests a measured move towards approximately $130,000. At the chart’s base, the Stochastic RSI hints at an upcoming cross-up of its indicators. Should these indicators confirm a crossover above the 20.00 level by week’s end, it would likely herald the strong upward price momentum necessary to propel the $BTC price past the $124,000 all-time high and potentially onwards to the $130,000 target. 🚀

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2025-09-11 13:03