Bitcoin price has displayed a quick reaction to US Inflation data. It was trading near $113,9200 after weaker U.S. inflation data lifted the price.
Analysts from Glassnode, Mike McGlone, Maartunn, and Vivek Sen point to range-bound trading.
This record network difficulty and global money supply growth are factors shaping the next move.
Bitcoin Price Holds in Tight Range as Price Reacts to U.S. Data
Glassnode pointed out that Bitcoin remained stuck in a narrow range as the supply under $111,100 continued to be absorbed by demand.
Notably, this shows that buyers are active at lower levels. The firm noted that a move above $114,100 could open the way to $118,000, where more supply may appear.
Meanwhile, the U.S. Producer Price Index gave the market a fresh push. Per data from the Bureau of Labor Statistics, PPI fell to 2.6% in August, well below the expected 3.3%.
Every month, PPI dropped by 0.1% instead of rising 0.3%. Core PPI also came in weaker at 2.8%, down from 3.7% last month.
Bitcoin price reacted quickly to the report. The price rose from an intraday low of $110,700 and broke through the $113,000 level.
Notably, at the time of writing, it was trading near $113,900. Traders are now weighing the chance of a larger Federal Reserve rate cut.
Some expect a 50 basis point move rather than the usual 25. This has added fuel to short-term bullish sentiment.
Network Strength and Market Comparisons
It is worth mentioning that while the Bitcoin price has been moving sideways, network strength continues to climb.
Analyst Maartunn pointed out that Bitcoin mining difficulty has reached another all-time high. This means miners are using more computing power to secure the network.
Rising difficulty often signals strong participation, even when the price does not show the same strength.
In another major update, market strategist Mike McGlone draws a different link. He compared the Bitcoin-to-gold ratio with the U.S. stock market capitalization-to-GDP ratio.
Both measures have stalled at levels first seen in 2021. McGlone says this could signal that Bitcoin price, gold, and other risk assets may be sitting at a broader peak.
According to the update, his view places Bitcoin in line with the wider market, rather than moving on its own.
These observations highlight that while Bitcoin’s network keeps getting stronger, its price still faces outside pressures.
The balance between technical strength and market conditions may decide where the next move goes.
Global Money Supply and the Case for a Big Move for Bitcoin Price
Analyst Vivek Sen points to a sharp increase in global M2, which measures the broad money supply.
He said this expansion could set the stage for Bitcoin to move in a parabolic fashion. Rising liquidity across the world often supports risk assets, and Bitcoin is no exception.
This global backdrop adds weight to the current setup. Traders see the price holding in a defined corridor, network difficulty reaching record levels, and liquidity expanding worldwide.
Together, these conditions suggest that Bitcoin price is nearing a decisive point. If Bitcoin price clears $114,100, Glassnode noted that $118,000 is the next key test.
A failure to hold above $113,000, on the other hand, could see the price return to the lower end of the range near $111,000. For now, the market waits to see which side breaks first.
With macro data easing, difficulty at record highs, and money supply climbing, Bitcoin faces conditions that could drive its next large move.
The question is whether buyers have enough momentum to push through resistance and confirm the breakout.