Bitcoin (BTC) gained at Friday’s Wall Street open as a fresh U.S. inflation surprise boosted sentiment.
Key points:
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Bitcoin price action heads towards key resistance after US CPI inflation data cools beyond expectations.
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Cryptocurrencies stand out on the day as macroeconomic assets react coolly to slowing inflation.
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Traders are wary of the overall BTC price strength.
Bitcoin Soars on Weak January CPI Data
Data from TradingView showed daily BTC price gains of up to 4% at the time of writing, with BTC/USD reaching $69,190 on Bitstamp.
The new rise occurred after the January publication of the US Consumer Price Index (CPI) did not meet expectations.
As confirmed by the Bureau of Labor Statistics (BLS), the core CPI was in line with estimates at 2.5%, while the broader reading was 2.4%, 0.1% lower than expected.
Reaction, Business Resource Kobeissi’s letter noted that CPI inflation was now at multi-year lows.
“Core CPI inflation is now at its lowest level since March 2021,” he wrote in a post on X.
“The odds of further interest rate cuts are rising again.”
Kobeissi addressed the prospects of the Federal Reserve cutting interest rates at its next meeting in March. As Cointelegraph reported, market expectations for such an outcome were previously at an all-time low, which was not helped by the strong labor market performance.
After the CPI release, the odds of a minimum 0.25% cut remained at less than 10%, according to data from CME Group’s FedWatch tool.
Next, Andre Dragosch, European head of research at crypto asset manager Bitwise, argued that when viewed through the lens of Truflation, an alternative inflation gauge, the CPI drop was “not really a surprise.”
📌RE: CPI publication
It’s really no surprise if you’ve been following the @truflation CPI number that has already plummeted below 1%…
IYKYK pic.twitter.com/GPEUqaSNZI
– André Dragosch, PhD⚡ (@Andre_Dragosch) February 13, 2026
In other macroeconomic aspects, gold attempted to regain the $5,000 per ounce mark, while the US Dollar Index (DXY) sought a recovery after an initial CPI drop to 96.8.
US stocks, on the other hand, failed to copy Bitcoin’s enthusiasm, trading modestly lower on the day at the time of writing.
Analyst Eyes Current Range for Lower BTC Price
Considering the outlook for BTC price action, market participants had little reason to modify their cautious positions.
Related: Binance Mocks Bitcoin Bullish ‘Swing’ as Crypto Sentiment Hits All-Time Low
“$BTC continues to consolidate on this falling wedge,” trader Daan Crypto Trades wrote in his latest X update.
“I attempted a bullish breakout yesterday, but it fell back down to the $68,000 level. That’s the area to watch if we want to see another rally at some point.”
Previously, Cointelegraph reported on the importance of the $68,000-$69,000 zone, which houses both the former 2021 all-time high and Bitcoin’s 200-week exponential moving average (EMA).
“Whether you like it or not: Bitcoin is still in an area where I think we will see a higher low,” predicted cryptocurrency trader, analyst and entrepreneur Michaël van de Poppe in his own forecast.
“It’s fragile, for sure, but that doesn’t mean we won’t see some momentum coming from the markets.”
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