Bitcoin Climbs Past $115,000 on Inflation Relief and ETF Flows, But Bearish Signals Loom

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.

According to CoinMarketCap data, Ethereum (ETH) also gained ground, trading above $4,550, while altcoins like Solana (SOL) and Dogecoin (DOGE) recorded sharp increases. Solana climbed over 7% to $239, while Dogecoin rose 5% to $0.26, signaling broad-based strength across the crypto market.

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.

Meanwhile, CryptoQuant’s Bull Score Index showed that most market indicators, including the MVRV-Z score and stablecoin liquidity, have turned bearish. Analysts warn that a sudden shift in sentiment could trigger profit-taking and liquidations.

If Bitcoin achieves a sustained breakout above $116,000, analysts believe the next target could be $118,000, with strong support around $113,700. However, volatility remains a risk as traders wait for the Fed’s upcoming interest rate decision.

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