Bitcoin (BTC) Price Prediction: BTC Eyes $65K as Inflation Data Sparks New Rally

Bitcoin has experienced a notable rise, extending an overnight rebound amid an improvement in risk sentiments. The crypto rose by 3% today, reaching $61,024 and

Bitcoin price showed signs of recovery on Monday, extending an overnight rebound amid an improvement in risk sentiments. However, the crypto’s further gains were seen limited by a lack of institutional inflows.

Bitcoin price rose by 3% on Monday, reaching $61,024 and recovering from the sharp losses it endured last week. Despite this rebound, Bitcoin’s further gains were seen limited by a lack of institutional inflows.

After the inflation data was released, analysts and industry leaders anticipated that Bitcoin’s value would continue to rise. For example, Dr. Martin Hiesboeck, Head of Research at Uphold, noted that Bitcoin could reach $65,000 if the Consumer Price Index (CPI) numbers did not have a negative impact on the market.

The market showed positive movement in anticipation of a 50 basis point U.S. interest rate cut, following the Producer Price Index (PPI) data that was released on Tuesday.

While traders still considered the possibility of a 25 basis point reduction, the recent Consumer Price Index (CPI) data showed general inflation below expectations but core inflation in line with predictions, which supported the case for lower interest rates. Such reductions typically enhance liquidity, making speculative assets like Bitcoin more attractive to investors.

Technical analysis from Ali Martinez highlighted a bullish trend for Bitcoin, with the formation of a bull pennant pattern on shorter time frames. This pattern typically follows a strong uptrend, characterized by a sharp price increase followed by a consolidation phase. The consolidation phase forms a symmetrical triangle, suggesting that the previous uptrend may continue upon a breakout.

On Martinez’s chart, Bitcoin is currently trading near the 0.786 Fibonacci retracement level, indicating a key area of support during the consolidation. Should Bitcoin break out above the upper boundary of the pennant, a significant upward move is likely.

The levels around $63,556 and $64,110 are key targets where price might face resistance. This aligns with the expectation of a surge towards $64,000 if the bullish momentum persists.

Bitcoin price is up by over 3% in the last 24 hours and by 6.6% over the past week to trade at $60,941.

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