Bitcoin Surges Past $69,000 After U.S. CPI Data Shows Cooling Inflation Sparking Optimism Among Traders in Global Cryptocurrency Markets

Bitcoin (BTC) surged above $69,000 on Friday after U.S. Consumer Price Index (CPI) data indicated slowing inflation, giving traders hope for a short-term recovery in the flagship cryptocurrency.

The move reflects renewed optimism in a market that has been consolidating after weeks of sideways trading.

Investors are now watching key technical levels closely, as breaking through resistance around $68,000 to $70,000 is considered critical for Bitcoin bulls to sustain upward momentum.

Analysts are noting that the cryptocurrency could see a short squeeze toward $80,000 if support around $65,000 holds.

Resistance at $68,000 Holds the Key

Bitcoin tried to push past $68,000 on Thursday but was rejected, according to Daan Crypto Trades, who noted on X that this level is “the area to watch if BTC wants to see another leg up.”

Technical charts show BTC/USD consolidating within a falling wedge pattern on the one-hour timeframe, which, if broken, could send the price toward $72,000 in the short term.

Analyst Ted Pillows warned that failing to hold support between $65,000 and $66,000 could lead to a deeper correction.

Conversely, reclaiming $70,000 could trigger a rapid 8% to 10% rally.

The four-hour chart also shows a V-shaped recovery pattern forming, with the 20-period EMA at $67,500 and the 200-week EMA at $68,000 acting as immediate resistance.

Potential Rally Targets and Moving Averages

If BTC clears the $68,000 resistance, traders are eyeing a short-term rally to $72,000, which aligns with the neckline of the V-shaped recovery pattern.

Beyond that, breaking $72,000 could push Bitcoin toward the 20-day EMA at $76,000 and eventually toward the 50-day simple moving average above $85,000, offering total potential gains of roughly 26%.

These targets are drawing the attention of both long-term investors and short-term traders looking to capitalize on momentum moves.

Analysts emphasize that these levels also coincide with clusters of liquidity, which could accelerate price swings.

Liquidation Zones and Short Squeeze Potential

Data from CoinGlass shows major walls of sell orders just below $75,000 and near $80,000.

Bitcoin analyst ZordXBT pointed out that liquidations are stacking above $72,000 and between $77,000 and $80,000.

If BTC breaks through these levels, it could trigger a short squeeze, forcing short sellers to close positions and potentially driving prices toward $80,000.

On the flip side, bid orders near $64,500 could act as support, creating a zone where buyers may step in to absorb selling pressure.

Ted Pillows highlighted clusters of bids at $65,000 and asks at $68,000, suggesting that BTC might revisit these levels in the near term before attempting higher moves.

Short-Term Outlook Remains Cautious

While traders are excited about the potential rally, analysts caution that Bitcoin remains sensitive to broader market sentiment and macroeconomic data.

Breaking the $68,000 resistance is crucial, but sustaining momentum beyond $72,000 will likely determine whether BTC can challenge $76,000 and higher levels.

Market watchers are also keeping a close eye on liquidity zones and potential liquidation events, which could amplify price movements in either direction.

As always, trading and investing in cryptocurrencies carry risk, and these forecasts are based on technical analysis and current market conditions.

What’s Next

Bitcoin’s immediate challenge is to maintain support around $65,000 while attempting to break through resistance at $68,000.

If successful, a short squeeze could propel the price toward $80,000, but traders should remain cautious and watch for signs of reversal or volatility near major liquidity clusters.

The coming week could be pivotal, as macroeconomic data, market sentiment, and technical resistance levels will likely shape BTC’s trajectory.

Traders and investors will be monitoring charts and liquidity zones closely to gauge the next significant move.

Summary

Bitcoin climbed past $69,000 after U.S. inflation data showed signs of cooling, sparking hopes of a short-term recovery.

Analysts highlight $68,000 to $70,000 as key resistance, while support at $65,000 will be crucial to prevent deeper corrections.

If bulls succeed, BTC could rally toward $72,000, with potential short squeezes driving prices as high as $80,000.

Technical patterns, moving averages, and liquidity clusters remain central to market forecasts, underscoring the volatility and risk inherent in cryptocurrency trading.