Bitcoin Price Targets $120K as Bulls Eye Liquidity Grab

US Inflation Data Provides Relief for Bitcoin

Bitcoin (BTC) saw a rebound at the Wall Street open on Wednesday as US inflation data brought relief to bullish investors. With BTC/USD hovering around $119,000 and up 0.5% for the day, the cryptocurrency market reacted positively to promising Producer Price Index (PPI) results. The PPI came in lower than expected, calming fears after the recent high Consumer Price Index (CPI) print.

PPI Results Show Cooling Producer Inflation

The US Bureau of Labor Statistics released data showing that the PPI rose 2.3% over the past 12 months, slightly lower than expected and below the prior month's increase. This cooling of producer inflation contrasted with the rising CPI, leading to speculation about Federal Reserve interest rate decisions. While some believe that the Fed will now be less likely to lower rates, others argue that the inflation numbers are not yet critical.

Bitcoin Market Eyes Liquidity Opportunities

With the potential for a fresh round of liquidity grabs, BTC market participants are watching key price levels. Exchange order-book liquidity has been a significant factor in recent price movements, with asks clustered between $119,500 and $120,500. Traders are also monitoring the Daily CME Gap between $114,300 and $115,600, which could influence price action in the near future. Despite the market volatility, this article does not offer investment advice and encourages readers to conduct their own research before making any decisions.