Recent CPI data has helped the market to rebound slightly, with top tokens regaining the main resistance area.

Although the market continues to be bullish, the price of Bitcoin may encounter resistance and experience a rebound.

The US Bureau of Labor Statistics has released the CPI data for August 2024, indicating that the inflation rate has slowed for the fifth consecutive month. The latest forecast is 2.6%, lower than July's 2.9%, and the lowest level since February 2021. In addition, the US core consumer price index rose slightly by 0.3%, slightly higher than the expected 0.2%, while the increase in July was 0.2%.

There is now speculation that the Fed may take a more moderate approach and may cut interest rates at the September meeting.

Expectations for a Fed rate cut have strengthened.

Furthermore, lower interest rates typically encourage more investment into higher-risk markets, such as cryptos. With inflation cooling, many expect the Fed to lower interest rates, thereby boosting investor confidence in the stock and crypto markets. Some market analysts are now predicting a significant increase in Bitcoin.

Currently, the expectation of a 25 basis point (bps) rate cut has surged to 85%, indicating strong expectations for a decrease in borrowing costs, which often stimulates risk assets like stocks and cryptos.

A rebound in September on the horizon?

Although Bitcoin is approaching $58,000, other major cryptocurrencies have also shown positive momentum, which is unlikely to happen in September. Ethereum (ETH) is hovering around $2,300, while Solana (SOL), XRP, and Dogecoin (DOGE) are all rising.

The cryptocurrency market performed poorly for most of September, but now there is hope for a rebound. Traders are keeping an eye on further gains in cryptocurrencies before the Federal Reserve's decision.

The upcoming US presidential election and ongoing interest rate cuts are expected to have a significant impact on both traditional and cryptocurrency markets. Although the changes may seem small, even minor improvements are important in a market where key indicators are constantly being revised. In view of this, the BTC price has remained in good shape, rebounding from the weekly support level of around $55,900 and attempting to break through to the upside.

The price of Bitcoin is actively forming the top of this week's candlestick chart, currently touching the upper limit of $58,400, but still well below the Bollinger Band moving average. However, on the daily chart, the price is testing the weekly resistance level and the Bollinger Band moving average. In addition, the price is attempting to break through the average band of the channel, and the MACD shows a bullish crossover, indicating that a new bullish cycle is about to begin. Therefore, the price of Bitcoin is expected to maintain a steady upward momentum, reaching the temporary resistance level of nearly $60,000, which could pave the way for reaching the upper limit of the Bollinger Band at $64,000.