Can Bitcoin Price Hit $103K As Retailers Look Beyond US PPI, CPI Data?

Bitcoin price could soon see a strong pullback above $100K levels after facing strong selling pressure over the past week. Also, retail participation in BTC is once again picking up which could drive it even higher. Investors have now decided to look past the stick inflationary environment amid the hot US PPI and CPI data.

Bitcoin Price Short Squeeze to Send It to $103K

Prominent cryptocurrency analyst Justin Bennett has weighed in on recent Bitcoin price movements, suggesting a possible short squeeze in the near term. In a statement on social media, Bennett noted the current sideways trading pattern for Bitcoin, attributing it to a broader market rally fueled by optimism. Bennet wrote:

“It’s not pretty, but with stocks rallying on hopes and dreams, there’s a decent chance this sideways chop ends with Bitcoin shorts getting squeezed.”

As a result, Bennet stated that Bitcoin show a quick bounce to $103K levels where it faces the next major resistance. As of press time, Bitcoin price traded near the flatline at $96,840 with daily trading volumes down 35% to $32 billion.

BTC Retail Demand Picks Looking Past US PPI and CPI Data

The Bitcoin retail demand seems to be making a strong comeback following a brief period of consolidation. Recent data indicates that retail activity dipped by only 2% over the past 30 days, a significant improvement compared to the 20% decline seen in January.

Market analyst Kyledoops suggested that this resilience, coupled with improving sentiment, could pave the way for the next upward move in Bitcoin price. However, it will be interesting to see how soon this Bitcoin consolidation will end.

Earlier this week on Tuesday, Jerome Powell indicated that quantitative easing is not on the horizon. The following day, inflation ticked up to 3%, and yesterday’s higher-than-expected Producer Price Index (PPI) suggests that inflation remains persistent. These economic signals point to continued tight liquidity conditions, making it less likely that interest rates will be cut in the near term.

Bitcoin Demand Among Institutions Growing

The demand for Bitcoin among institutions and companies has been growing as GameStop showed interest in putting BTC on its balance sheet. “All the liquidity is going into Bitcoin. I haven’t heard any institution say they are buying your favorite altcoin,” noted analyst Ali Martinez.

Matthew Sigel, head of digital assets research at VanEck, noted that 20 US states are currently advancing legislation related to Bitcoin reserves. If all these bills are passed, they could channel approximately $23 billion into the Bitcoin market, which would be equivalent to around 247,000 BTC.