- Bitcoin topped $124,496 before retracing, holding near key $113,796 support.
- Three major fair value gaps align with critical Fibonacci retracement zones.
- Hotter-than-expected PPI data dampens hopes for a September Fed rate cut.
Bitcoin surged to a record $124K before retreating, as hot U.S. PPI data tempered rate cut expectations. Traders now watch the $120K level, a key line that could open the path to $135.
BTC Breaks Records but Faces Resistance
Bitcoin (BTC) reached a new all-time high of $124K on Wednesday. The rally extends a 33% year-to-date gain and nearly 120% growth over the past 12 months. Data from BitBull’s analysis shows BTC later eased to $117.9K, down 2.8% for the session.
BitBull noted that a close above $120K would confirm the uptrend, potentially driving BTC to $130K–$135K in Q3. This could trigger stronger altcoin rallies, aligning with the current “up-only” sentiment in the market.
Macro Pressures Add Uncertainty
Investors.com reported that July’s Producer Price Index rose 0.9% month-over-month, the largest gain in over three years, pushing annual wholesale inflation to 3.3%. The core PPI also climbed 0.9% m/m and 3.7% y/y.
The hotter-than-expected data reduces the odds of a September Fed rate cut. Higher bond yields and a stronger dollar could pressure risk assets like BTC and ETH in the short term.
Between August 8 and 14, BTC’s market cap failed to hold above $2.45 trillion despite multiple attempts. Resistance at that level and support near $2.34 trillion shaped a sideways range. Crypto Patel noted Bitcoin holdings by entities have reached 3.64 million BTC, with large amounts in ETFs and funds, potentially tightening supply.
Technical Zones Define the Structure
The daily BTC/USDT chart highlights three major fair value gaps. The first spans $70K–$81K, aligning with the 0.5 Fibonacci retracement. The second lies between $92K–$104K, matching the 0.382 Fibonacci level at $98,020. The most recent gap, $113K–$120K, aligns with 0.382 retracement at $113,796, now acting as key support.
Source BitBull X
BTC has maintained a bullish structure since early 2025, with higher highs and higher lows. After clearing April’s consolidation, prices surged through May and June. July saw a brief pullback to the mid-June gap before rebounding. A sustained hold above $113,796 could pave the way toward $150K–$170K.
