Bitcoin Rebounds After Inflation News, Breaks Key Resistance Level!

The Fed's next move has crypto traders on high alert.

Bitcoin (BTC) is back in the game, smashing through a major psychological and price barrier. The surge came right after a new report showed U.S. inflation is cooling down, which has investors hoping the Federal Reserve (Fed) will cut interest rates soon. The world's top crypto jumped 1.22% on Tuesday, hitting $120,324 USDT and putting everyone on the edge of their seats.

Bitcoin breaks key resistance! US inflation drives BTC to $120,324. Is a new all-time high coming? We analyze the rally. / TradingView

All Eyes on the Fed: Are Rate Cuts Coming?

The big news driving this rally was the U.S. annualized inflation report, which came in at a moderate 2.7%. While that's the same as last month, it was lower than the 2.8% economists were expecting. This surprise has the financial markets buzzing, with many speculating that the Fed might finally cut interest rates at its upcoming September meeting.

Historically, lower interest rates tend to be a green light for riskier assets like cryptocurrencies. When traditional investments like bonds offer lower returns, investors often move their money into higher-growth sectors. This sentiment has clearly fueled the market, as investors have been piling into BTC all day.

Resistance is Futile: A New All-Time High?

This isn't just another price pump. Bitcoin has successfully broken above a crucial resistance zone—a price ceiling that has been holding it back for weeks. The fact that it's holding this new level is a huge deal for technical analysts, who see it as a sign of serious strength.

If Bitcoin can keep this momentum, it could be on a direct path to a new all-time high in the coming days. The crypto is still in a bull trend, and this latest move might be the catalyst it needs to test—and potentially blow past—its previous record. The entire crypto community, from seasoned traders to loyal "hodlers," is buzzing with excitement.

Disclaimer: Cryptocurrency trading is super volatile and comes with major risks. This article is for informational purposes only and is not financial advice.