Bitcoin is rebounding to the $120,000 support level after a sharp drop which briefly filled a CME futures gap at $118,335, removing a key technical overhang.
In a post on X, analyst Jelle described Bitcoin’s move as a “sharp reaction” to the unexpected jump in the Producer Price Index (PPI), with Bitcoin dropping to clear recent lows before rebounding toward the $120,000 support level.
Jelle Flags Volatility After PPI-Driven Sell-Off
A chart shared by the analyst showed price action slicing through intraday lows and dipping into the $118,000 range before rebounding. The move partially filled a CME futures gap before Bitcoin recovered to trade back around the $120,000 support area.
British Hodl Confirms CME Gap Closure
British Hodl, who on August 11 had pointed out the creation of a new CME gap at $118,335, confirmed today that the gap was now closed. The post-PPI sell-off briefly took Bitcoin into this gap range, completing the move before a swift rebound. With this gap now resolved, a notable piece of technical overhead has been removed from the market.
Notably, the U.S. Bureau of Labor Statistics reported that July’s PPI rose 0.9%, the largest monthly gain since June 2022, and was up 3.3% year-over-year, higher than the expected 2.5%, leading to the current volatility in the crypto market. Meanwhile, core PPI, which excludes energy, trade, and food, increased 0.6%, marking its biggest rise since March 2022.
Technical Context and Market Outlook
Bitcoin is now trading below the $120,000 level as it failed to absorb selling pressure in the immediate post-PPI volatility. Bull Theory noted that key support sits at $117,500, with a potential drop to $110,000 if it breaks. Meanwhile, resistance remains at $124,000. He urged the market to watch for the latest ETF report, as tariff-driven manufacturing pressures could influence next month’s CPI.
Notably, analyst Ali Ash described the short-term Bitcoin outlook as bearish, noting that a failed support-resistance retest has created a textbook “Upthrust Trap” that drained buyer liquidity. He identified $116,000 as the first key support, warning that a break below could open the door to $110,000.
Meanwhile, Crypto Patel has earlier noted that a confirmed close above the $120,000 level could pave the way for Bitcoin to reach $150,000, while rejection risks a pullback toward $111,000 or even $100,883. Similarly, Crypto Rover expected a new all-time high if Bitcoin clears resistance at $121,500–$123,000.