Bitcoin (BTC) is holding steady around the $114,000 mark after a sharp rally on Wednesday, as traders brace for the release of US Consumer Price Index (CPI) data later today.
The flagship cryptocurrency ended several weeks of downward price action on Sept. 2 with a daily candle close above the corresponding trend line, a day after seeing its lowest levels in nearly two months.
Currently, BTC has surged to a 17-day high of $114,500, extending its recent bullish momentum and breaking through the crucial $113,000 resistance level that had repeatedly capped gains over the past week.
Register for Tekedia Mini-MBA edition 19 (Feb 9 – May 2, 2026): big discounts for early bird.
Tekedia AI in Business Masterclass opens registrations.
Join Tekedia Capital Syndicate and co-invest in great global startups.
Register for Tekedia AI Lab: From Technical Design to Deployment (next edition begins Jan 24 2026).
BTC Breaks Key Resistance as Bulls Regain Control
Earlier attempts to break above $113,000 were met with swift rejections, sending BTC tumbling by several thousand dollars on both September 6 and September 10. However, this time, bulls managed to overcome the resistance, setting the stage for further upward movement.
Despite a slight pullback, BTC remains firmly above $114,000, with traders anticipating heightened volatility once the CPI report drops. Historically, CPI releases have caused sharp, short-term declines before Bitcoin rebounded strongly.
Popular crypto analyst Rekt Capital noted that Bitcoin’s consistent rebounds suggest strong bullish momentum. “Each rejection from $113K has resulted in shallower and shallower pullbacks,” Rekt Capital explained, adding that it’s unlikely Bitcoin has already peaked this cycle, as that would make this one of the shortest bull markets in history.
Macro Tailwinds: Inflation and Rate Cuts
Bitcoin’s rise has been supported by broader macroeconomic trends. A recent drop in US inflation data has boosted risk assets such as Bitcoin and gold, with expectations growing for the Federal Reserve to begin interest rate cuts as early as next week.
Trader Jelle noted on X: “If today’s CPI report matches expectations, it will likely confirm a rate cut later this month, which could fuel further upside for BTC and the broader market.”
Analysts Eye $160,000 BTC Target
Fresh on-chain data has further fueled optimism. Trader BitBull highlighted a “golden cross” forming on Bitcoin’s MACD chart, a signal historically linked to major rallies. “Last time this occurred, BTC surged 40% in a month and set a new all-time high,” BitBull said. If history repeats, BTC could climb to $160,000, a target many traders are eyeing for late 2025.
Altcoins Join the Rally
Bitcoin’s momentum has spilled over into the altcoin market. Avalanche (AVAX) surged more than 7%, nearing the $30 level, while Dogecoin (DOGE) and Stellar (XLM) jumped by up to 3%.
Ethereum also saw gains, climbing 2.3% to trade above $4,400.
The standout performer, however, was Mantle (MNT), which soared to a new all-time high of $1.65, leading the market in percentage gains. In contrast, Worldcoin (WLD) dropped almost 8% after its recent strong rally.
The overall crypto market capitalization has surged past the $4 trillion mark, now standing at $4.06 trillion, according to CG data. Bitcoin’s dominance has steadied at 56%, reflecting renewed investor confidence in both BTC and altcoins.
Future Outlook
Bitcoin’s breakout above $113,000 signals strong bullish momentum as traders await critical CPI data. If macroeconomic conditions align and historical patterns repeat, analysts believe BTC could rally toward $160,000, potentially setting the stage for a new all-time high.