Bitcoin News Today: Bitcoin Eyes $120K Liquidity Zone as PPI Inflation Cools Beyond Expectations

Key Takeaways:Bitcoin targets liquidity above $120,000 following better-than-expected US PPI data.June PPI rose just 2.3%, cooling faster than expected and contrasting the hotter CPI print.BTC price avoids drop to CME futures gap near $115,000 as bulls regain momentum.Bitcoin (BTC) hovered around $119,000 on Wednesday as traders reacted to cooling US Producer Price Index (PPI) data, which offered a reprieve after a hotter-than-expected Consumer Price Index (CPI) print the day before. The shift in macro sentiment helped Bitcoin maintain a 0.5% intraday gain, while traders began eyeing a potential liquidity grab near the $120,000 resistance zone.Bitcoin Finds Support as US PPI Inflation CoolsAccording to the U.S. Bureau of Labor Statistics, PPI inflation rose 2.3% year-on-year in June—0.2% below expectations and a noticeable slowdown from May’s 2.7% figure. The data showed:A 0.3% monthly increase in goods prices.A 0.1% decrease in services, creating a mixed but generally cooler print.“Producer inflation is cooling down again,” said macro analytics firm The Kobeissi Letter.This easing contrasts with Tuesday’s CPI report, which showed consumer inflation running hotter than expected. Despite the divergence, Fed rate cut odds remain unchanged for July, with CME Group’s FedWatch Tool showing no signs of a shift in market expectations for the July 30 FOMC meeting.Crypto analyst Matthew Hyland noted that rising oil prices in June were the only major CPI outlier and that broader inflation continues to cool.“There is no high inflation like nearly all the experts claimed would be here by now,” he wrote on X.BTC Liquidity Clusters Near $120K as CME Gap FadesIn crypto markets, Bitcoin’s price action remained constructive, avoiding a downward fill of the CME futures gap between $114,300 and $115,600—a zone previously seen as a price magnet.Instead, traders are focusing on the $119,500–$120,500 range, where CoinGlass data shows a dense cluster of ask-side liquidity.“Looks like Bitcoin is finding support just above its Daily CME Gap,” noted analyst Rekt Capital, signaling a shift in short-term market structure toward strength.Bitcoin has shown a pattern of targeting liquidity pockets in recent months, using exchange order books as low-timeframe guides. The cluster of liquidity just above $120,000 could now act as the next magnet for price action—especially if macro headwinds ease and ETF flows stay positive. $120K Breach or Sideways Cooling?While rate cut odds remain static, Bitcoin’s resilience above $118,000 and the presence of liquidity above $120K suggest a bullish bias in the short term. A clean breakout above that level could open the path toward $124,000–$128,000, though upside may be capped ahead of the July 30 Fed decision.As macro conditions stabilize and inflation trends soften, Bitcoin bulls appear focused on reclaiming higher ground—one liquidity pocket at a time, according to Cointelegraph.