• BTC rose about 1.4% to around $92,000 but remained below recent highs, with investors cautious ahead of the U.S. December CPI release and broader macro uncertainty.
•  Inflation outlook and Fed policy in focus: Expected steady headline inflation and slightly higher core CPI could influence the Fed’s rate-cut path, while geopolitical tensions and Fed-related political pressure continue to dampen risk appetite.
•  Technical indicators point to a potential breakout: Bitcoin is forming an ascending triangle and trading above its 50-day SMA, with RSI and MACD turning bullish, suggesting a possible move toward $94,000 if resistance is breached, while support sits near $89,000.

Bitcoin price surged 1.4% on Tuesday but remained down from its $92,434 intraday high, as investors remain cautious ahead of upcoming US inflation data and heightened global tensions.

BTC was trading at $92,003 as of 07:22 a.m. EST. Bitcoin continues to struggle to make headway through late-2025 and early-2026, as sentiment towards crypto markets largely cooled.

Focus today has shifted squarely on the upcoming U.S. consumer price index (CPI) inflation data for December, set to be released at 08:30 a.m. EST.

CPI Data Awaited For More Rate Cut Cues

Data released is expected to show headline CPI remaining steady at 2.7% annually, while core CPI is expected to have risen slightly from 2.6% to 2.7% year-on-year.

Inflation and labor market strength are the Fed’s two biggest considerations for setting interest rates. Nonfarm payrolls data released last week showed some resilience in the labor sector.

Any signs of sticky inflation could give the Fed less impetus to cut interest rates in the coming months.

The market awaits the data as it continues to take in the announcement by Fed Chair Jerome Powell that he had received threats of legal action from the US Department of Justice (DOJ) linked to an ongoing renovation of the Fed’s headquarters.  

Powell continues to reiterate that the threats from the DOJ were intended to pressure the Federal Reserve into acquiescing to President Trump’s demands for lower interest rates. Trump has continuously raged against Powell for not giving in to his demands.

As the crypto markets remained unmoved, appetite for speculative assets remained dulled by heightened geopolitical tensions worldwide.

Increased public unrest in Iran, coupled with fears of U.S. intervention in the country, rattled markets and drove up oil prices. This kept markets largely pinned to safe havens such as gold.

Where does the BTC price go from here?

Also Read: Bitcoin Price Holds Steady as Futures Cool Ahead of Key Supreme Court Tariff Ruling – Market Wrap

Bitcoin Price Gears Up Towards A Breakout

Bitcoin investors are still cautious amid the ascending triangle pattern, a formation that, in most cases, signals a bullish rally after a breakout.

The BTC price is trading below a sustained resistance level of around $94,000 and a rising support level, with supply zones at $80,500, $85,300, and $87,200, now supported by $89,600.

In the short term, the Bitcoin price has crossed above the 50-day Simple Moving Average (SMA) on the daily chart, which adds to the bullish outlook and the possibility of a breakout.

Meanwhile, major indicators support a bullish outlook. The Relative Strength Index (RSI) at 57.41 and climbing signals that investors are entering the market, which could translate into a price push.

Bitcoin’s Moving Average Convergence Divergence (MACD) has also turned positive, with the blue MACD line crossing above the orange signal line, confirming that sentiment has turned positive.

BTC/USD Chart Analysis Source: TradingView

If the rally picks up and momentum continues to build, the price of Bitcoin could surge towards the $94,000 psychological resistance. If this level is breached, the next likely target will be the previous demand area at $106,107, which lies within the 200-day SMA.

According to data from Ali Martinez, a prominent crypto analyst on X, BTC needs to surge above the $94,555 level for a bullish move to occur.

Conversely, if the bears act on BTC at this level, the key support around $89,000 would hold.