Bitcoin (BTC) has extended, surging to a three-week high of $115,500, fueled by softer U.S. inflation data and steady inflows into Bitcoin ETFs. The rally coincided with growing investor optimism that the Federal Reserve may deliver a 25 basis-point rate cut next week, further boosting risk appetite.
Market analysts credited the upward move to different macroeconomic stability and institutional inflows. Bitcoin ETFs registered more than $928 million in inflows, reinforcing demand from both retail and professional investors.
Despite the bullish wave, Bitcoin faced resistance above $116,000, where sellers limited further gains. Analysts noted that rejection at this level emphasizes ongoing market caution. It is believed that the rally indicates renewed sentiment, but the rejection above $116,000 shows that sellers continue to be active.
Derivatives data echoed this caution. The weekly options expiry revealed a put/call ratio of 1.3, signaling that bearish bets slightly outweigh bullish positions. This trend suggests traders expect Bitcoin to remain range-bound, with probable moves limited between $111,000 and $116,000.
Adding to the positive outlook, Sean Ono Lennon, son of music legend John Lennon, recently praised Bitcoin as a hedge against “runaway money printing,” emphasizing its appeal as a scarce, decentralized asset during times of economic uncertainty.
For now, Bitcoin’s uptrend remains steady, but looming bearish signals and resistance levels could challenge the strength of the rally in the coming days, possibly leading to another dip below $110,000.
Cover image from ChatGPT, BTCUSD on Tradingview
