Bitcoin Rebounds Above $79K on US Inflation Data, But Analyst Warns of Potential Pullback

The US August inflation figures were released on Friday, showing a 0.4% monthly increase and a 3.4% annual advance in Consumer Price Index (CPI), exactly meeting market consensus.

Bitcoin initially dropped to $76,000 after the data release but quickly staged a turnaround, gaining over 3% for the session as US stock indices mirrored this price action.

The primary inflation contributor in August was energy costs, particularly gasoline, which surged 3.9% and accounted for more than one-third of the headline CPI gain.

Market analyst Ted Pillows expressed skepticism regarding the durability of Bitcoin's rebound, highlighting that the daily MACD indicator remains in a downtrend and noting that Friday's price surge lacked substantial spot market support.