Bitcoin Soars Past $114K After PPI Drop, Is $130K Next?

Bitcoin has bounced back above $114,000 following fresh U.S. producer price index (PPI) data that showed inflation unexpectedly cooling.

The move strengthened expectations that the Federal Reserve will cut interest rates in the coming week, a decision that could unlock more liquidity for risk assets like crypto.

At the same time, technical analysts point to a repeating shakeout pattern in Bitcoin’s price action that may be laying the foundation for a bigger move higher.

With momentum building and traders closely watching key levels, the question is whether Bitcoin can push toward $130,000 in the near term.

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Key Takeaways

1. Bitcoin rebounded past $114K after U.S. wholesale inflation unexpectedly fell.

2. Analysts highlight a shakeout pattern that could signal a larger breakout.

3. A climb to $130K is possible if support holds and momentum continues.

Why Inflation Data Moved Bitcoin

Bitcoin’s latest uptick came after the U.S. Bureau of Labor Statistics reported a 0.1% drop in the producer price index for August. Economists had forecast an increase, so the decline took markets by surprise.

With annual wholesale inflation holding at 2.6%, the reading bolstered hopes that the Federal Reserve could begin cutting rates sooner than expected.

Lower interest rates often benefit cryptocurrencies because they increase available liquidity and make speculative assets more attractive.

Traders quickly priced in the possibility of a quarter-point rate cut at next week’s Fed meeting, with further cuts projected before the end of the year.

Bitcoin’s move above $114,000 aligned with this shift in sentiment, even though it still trades within a range established over the past month.

Other factors also shaped the market reaction. Corporate Bitcoin purchases from firms such as MicroStrategy and Metaplanet had limited influence, highlighting that macroeconomic data remains a stronger driver in the current environment.

The broader crypto market mirrored Bitcoin’s modest gains, but enthusiasm was tempered as investors waited for additional catalysts. For now, inflation and rate expectations are the dominant themes.

Read Also: Crypto on Edge: Bitcoin & Ethereum Brace for Big Inflation Week

The Shakeout Pattern and Technical Signals

Beyond macroeconomic data, analysts are closely watching Bitcoin’s price structure. According to crypto analyst CrypFlow, Bitcoin is moving through a classic shakeout pattern.

These setups involve sharp downside corrections that drive out weaker hands before a new expansion phase begins. Historical cycles since 2022 show that such shakeouts often precede significant upward moves.

Recent weekly candlestick patterns appear to fit this framework. The drop toward $110,000 last month marked the latest dip, which CrypFlow interprets as part of the ongoing consolidation phase.

With Bitcoin now climbing back above $113,000, the stage could be set for the next leg higher. Technical indicators also add weight to this outlook. The stochastic RSI on the weekly chart has reached oversold territory and is close to a bullish cross.

If confirmed, it would suggest upward momentum is building. Combined with the broader consolidation breakout, these signals strengthen the case for Bitcoin retesting and potentially surpassing its previous highs.

For traders, this technical backdrop provides both optimism and a reminder that Bitcoin rarely moves in a straight line.

Read Also: Bitcoin Price Nears $113K, Is $150K Next by 2026?

Can Bitcoin Reach $130K Soon?

The immediate target many analysts are watching is $130,000. At current levels near $114,000, that represents a gain of about 15%.

Historically, once Bitcoin breaks out of consolidation zones after shakeout patterns, it tends to advance in step-like phases.

The expansion phase projected by current technical models points toward new highs above $124,000 and a possible push beyond $130,000.

However, several factors could influence whether this plays out. Continued signs of easing inflation would likely boost momentum, especially if paired with a Fed rate cut.

On the other hand, uncertainty around tariffs, broader economic growth, and regulatory developments could slow progress.

Bitcoin’s correlation with technology stocks also remains relevant, as risk sentiment in equity markets often spills over into crypto.

If Bitcoin does approach $130,000, analysts expect its support base to shift closer to $124,000. That would mark a consolidation zone at higher levels, preparing the market for the next phase of volatility.

For now, holding above $113,000 remains a key sign of strength. Traders are watching closely to see if this rally develops into a sustained uptrend.

Read Also: What Is FBTC? Fidelity Bitcoin ETF Explained and How to Buy

Conclusion

Bitcoin’s rebound past $114,000 shows how closely the crypto market is tied to U.S. economic data and technical patterns.

The latest PPI reading gave traders confidence that inflation is cooling, while technical signals suggest Bitcoin is poised for another expansion phase. With $130,000 on the horizon, the next few weeks could be pivotal for crypto markets.

For investors and traders, navigating these conditions safely is just as important as identifying opportunities.

Platforms like Bitrue make this easier by providing strong security, reliable performance, and user-friendly tools. In a volatile environment, choosing an exchange that prioritizes both safety and efficiency ensures that traders can focus on opportunities without unnecessary risks.

As Bitcoin gears up for its next potential move, having a trusted platform is the best way to trade with confidence.

FAQ

Why did Bitcoin rise above $114K?

Bitcoin gained after U.S. PPI data showed inflation cooling, boosting expectations for a Federal Reserve rate cut.

What is the Bitcoin shakeout pattern?

It refers to sharp corrections that drive weaker traders out before Bitcoin enters a new expansion phase.

Is Bitcoin really headed to $130K?

Analysts suggest it could, based on technical signals and past market cycles, though risks remain.

How do interest rates affect Bitcoin?

Lower rates increase liquidity and risk appetite, making cryptocurrencies more attractive to investors.

What support levels are important now?

Bitcoin is holding above $113K. If momentum continues, support could shift closer to $124K before the next breakout.

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