Bitcoin is trading near $79,000 as analysts assess whether the cryptocurrency can break higher toward $100,000. The market remains largely range-bound, with support around $78,000 and resistance near $82,000, while investors await the latest U.S. inflation data.

A higher-timeframe close above $83,000 could provide a bullish trigger for Bitcoin and open the way toward $100,000. However, a failure to break resistance could expose the market to a decline into the $60,000-$70,000 range.

Bitcoin Golden Cross Formation Draws Attention

Popular analyst Crypto Patel said Bitcoin’s price chart is approaching a golden cross formation. He also said flows into exchange-traded funds (ETFs) are supporting the potential for further upside.

Patel noted that $4.25 billion flowed into U.S. spot Bitcoin ETFs over the past six weeks. He identified an $83,000 close on a higher timeframe as a key level for Bitcoin. At the same time, he cautioned that failing to move above resistance could lead to a decline toward the $60,000-$70,000 area.

Another analyst, CrediBULL Crypto, said significant liquidity is building to the upside as Bitcoin continues to hold its key support region. The analyst added that a temporary wick toward the established range lows remains possible.

CrediBULL Crypto nevertheless said further upside remains the most likely medium-term scenario. If Bitcoin continues to hold its current region, a move above $82,000 could remain in focus.

CPI and PPI Data Could Influence Bitcoin’s Next Move

Bitcoin investors are closely monitoring the U.S. Consumer Price Index (CPI) and Producer Price Index (PPI) data for August. The PPI was scheduled for release on Thursday, September 10. A reading above expectations could add pressure to risk assets, including Bitcoin, while a softer result could provide some relief to markets. Together, the reports are being watched for their potential impact on expectations for the Federal Reserve’s interest-rate policy.

Economists at TD Securities expect the upcoming U.S. CPI report to show that underlying inflation remained under control in August. Core CPI is projected to increase 0.19% month over month.

TD Securities expects the services segment to be the main driver of inflation. By contrast, core goods prices are expected to weigh on the reading through a modest monthly decline.

On an annual basis, TD Securities forecasts core CPI to rise 2.3%, which would be 10 basis points below the July figure. Headline inflation is expected to remain unchanged at 3.4% year over year.

Crude oil prices are another macroeconomic factor being monitored by investors. Brent crude has risen again above $100 per barrel, while U.S. oil prices are above $96 per barrel. If CPI inflation is higher than expected, the Federal Reserve could face greater difficulty maintaining its rate pause.

Bitcoin ETF Outflows Increase

Investors are also monitoring flows into spot Bitcoin ETFs for indications about the cryptocurrency’s next move. During Wednesday’s trading session on September 9, Bitcoin ETFs recorded $100.7 million in net outflows, according to data from SoSoValue.

Total outflows over the previous two trading sessions reached $147 million. The withdrawals came as Bitcoin struggled to reclaim $79,500, following nearly $1 billion in ETF inflows during the preceding three sessions.

The recent weakening in ETF demand has increased caution among market participants, although it is not yet being treated as evidence of a trend reversal. A continuation of ETF outflows combined with a break below $78,000 could increase downside concerns for Bitcoin.

This article is for informational purposes only and should not be considered financial or investment advice. Cryptocurrency markets remain highly volatile. Readers should conduct independent research before making investment decisions.

Source: The Market Periodical