Bitcoin news: BTC price trims CPI-driven losses as traders eye PPI to confirm momentum durability
Bitcoin retreats after CPI shock, recovers to $118K ahead of PPI release
Bitcoin price started the week on a weak footing after reaching an all-time high of $122,000 on Monday.
Profit-taking set in immediately, triggering a short-term pullback that deepened on Tuesday following the release of the U.S. Consumer Price Index report.
Highlights
-Bitcoin fell to $115,700 after CPI data sparked fears of delayed rate cuts
-Bitcoin rebounded to $118,000 today, but gains came on weaker volume
-RSI shift to 56 suggests mild bullish momentum ahead of today’s PPI release
The June CPI data showed inflation had increased for the second consecutive month, both in the headline and core figures, which softened expectations for an interest rate cut in July. The hawkish tone from the CPI release amplified selling pressure, dragging Bitcoin down to a 4-day low of $115,700.
BTC price dynamics (July 2025). Source: TradingView
Price later recovered in the North American session, clawing back some CPI-induced losses. However, the rebound occurred on lower trading volume, a sign that buyers were cautious to re-enter in size. As a result, Bitcoin trimmed its intraday losses on Tuesday to just 1.73%, compared to the earlier drop of 3.4%.
Bitcoin RSI returns to 56, but caution persists on low volume bounce
Today, Wednesday, July 16, the recovery continued. Bitcoin traded slightly above $118,000 in the European session, reflecting a modest 0.5% daily gain at the time. This extended the bounce from the previous day’s low to over 2%, helping to reduce the week-to-date loss to about 0.5%.
From a technical standpoint, the four-hour Relative Strength Index had slipped into bearish territory during the decline. However, the recent recovery lifted the 4-hour RSI back to 56, which indicates a shift into mild bullish territory. The daily RSI also remains comfortably in bullish range, staying below the overbought threshold of 70. This suggests that momentum across both short-term and longer-term timeframes is still leaning upward.
Still, the recovery is not without risks. The Producer Price Index (PPI) report due later today could once again challenge Bitcoin’s resilience. A stronger-than-expected PPI print would likely reduce expectations for near-term Fed rate cuts, and that might exert fresh downside pressure on Bitcoin. Until then, traders are watching whether current momentum can hold above the $117,000 area or whether renewed macroeconomic pressure will interrupt this fragile rebound.
Bitcoin price fell below $116,200 as RSI dropped under 50, showing weakness. Whale transfers shocked the market and fueled fears of large holders selling at the top.
