Bitcoin price breaks $66,000 thanks to positive inflation numbers

The Bitcoin (BTC) price has skyrocketed, breaking the $66,000 mark for the first time in almost two months. The digital currency has received a boost from inflation data from the United States, which came in lower than expected. Where can the bulls possibly run into resistance now?

BTC price makes a big jump

Bitcoin successfully conquered the key resistance level at $65,000 yesterday and has now continued to rise past $66,000. To be precise, the BTC price has risen to a peak of almost $66,600, marking the highest point since July 31.

Last night, Bitcoin finally managed to break the $65,000 barrier after numerous failed attempts. This marks the first time in more than six months that a higher high has been achieved, which means that there is once again a prospect of higher prices.

Yesterday Bitcoin hit the wall around $65,700, but this afternoon the price shot through in a straight line. From a price of $65,400, Bitcoin jumped almost 2% in less than an hour.

Bitcoin has now fallen back slightly, but the price is still holding up above $66,000. Perhaps the bulls can refuel here in the coming days, as volatility normally drops sharply over the weekend.

There seems to be a very good chance that Bitcoin will end the week in the green. Currently, the coin is trading up almost 5% since Monday. It would be the third green week in a row, which has only been achieved a few times before this year.

The next big test for the bulls is around $68,000 – $70,000. This is also the last hurdle to overcome before reaching the all-time high of almost $74,000.

Lower than expected PCE Price Index

Bitcoin started its rise today at 3:45 PM, just under an hour after new inflation figures were released from the United States. This concerns the so-called PCE price index, also the favorite inflation measure of the US central bank.

This has come in lower than expected on almost every front with annual inflation falling from 2.5% to 2.2%, marking the lowest level since 2021

Matt Mena, crypto research strategist at 21Shares, noted that these recent inflation numbers create a favorable environment for Bitcoin and the broader crypto market. “Investors are flocking to risky assets, expecting the Fed to adopt more accommodative policies in the future,” she explained.