Bitcoin, Altcoins Surge on Weakening Producer Price Index

Crypto Markets React to Lower Inflation Data

Bitcoin (BTC) experienced a rally, pushing past $114,000, following the release of August's Producer Price Index (PPI). The inflation figures came in lower than anticipated, bolstering expectations of a possible interest rate cut by the Federal Reserve.

Several altcoins also saw significant upward movement, breaking through key resistance levels.

Rate Cut Expectations Rise

The CME FedWatch tool indicates a 90% probability of a rate cut at the Federal Reserve's September 17 meeting. A rate cut could provide further bullish momentum for Bitcoin.

Tephra Digital suggests that Bitcoin could potentially reach the $167,000 to $185,000 range by the year's end, assuming its correlation with M2 money supply and gold holds.

Sentiment Shifts to Bullish

Onchain analytics platform Santiment noted a recent negative sentiment among traders, with many anticipating Bitcoin to fall below $100,000 and Ether (ETH) below $3,500. However, Santiment suggests that markets often move contrary to popular expectations, implying that a significant correction may not occur.

Key Price Levels to Watch

Here's a look at critical resistance and support levels for Bitcoin and several major altcoins:

Bitcoin (BTC)

A break above the 50-day simple moving average (SMA) at $114,668 could lead to a rally toward $117,500 and then $120,000. Strong resistance is expected in the $120,000 to $124,474 range.

On the downside, a drop below $109,329 could signal weakening bullish momentum, potentially leading to a decline toward $107,000 and possibly $100,000.

Ether (ETH)

ETH has been trading in a narrow range between $4,250 and $4,500. A breakout above $4,500 could trigger a rally toward the $4,957 resistance. A break below $4,250 could lead to a drop toward $4,060 and potentially $3,745.

XRP (XRP)

A close above the downtrend line would negate the bearish descending triangle pattern, potentially leading to a rally toward $3.15 and $3.40. Conversely, a break below the 20-day EMA (approximately $2.91) could see XRP test $2.73 and potentially $2.20.

BNB (BNB)

BNB has broken above the $900 resistance. Continued bullish momentum could push it toward $1,000. A break below $840 could shift momentum to the bears, potentially leading to a decline toward $820 and $794.

Solana (SOL)

SOL has surpassed the $218 resistance and could rally toward $240 and $260. A break below the uptrend line would invalidate the bullish outlook, potentially leading to a drop toward $175.

Dogecoin (DOGE)

DOGE is approaching the $0.26 resistance. A successful break above this level could lead to a rally toward $0.29 and potentially $0.44. A rejection at $0.26 and a break below the moving averages could signal continued range-bound action.

Cardano (ADA)

ADA has broken above the downtrend line of a descending channel. A close above the channel could lead to a rally toward $0.96 and $1.02. Failure to hold above the moving averages could see ADA retest support.

Chainlink (LINK)

LINK is attempting to break above the $24 resistance. A successful break could lead to a rally toward the $26 to $28 resistance zone. A failure to hold above the 20-day EMA could see LINK test the 50-day SMA at $21.59.

Hyperliquid (HYPE)

HYPE has completed an ascending triangle pattern, suggesting a potential rally to $64.25. A break below the 20-day EMA ($47.24) would signal weakness, and a drop below the 50-day SMA ($44.14) would indicate a potential short-term top.

Sui (SUI)

SUI is facing resistance at the 50-day SMA ($3.60). A break above this level could lead to a rally toward the downtrend line and potentially $4.18 and $4.44. A failure to hold above the 20-day EMA ($3.45) could see SUI retest support.