Key TakeawaysBTC reached $65,500 on July 15, marking its strongest level since June 22The U.S. Producer Price Index registered 5.5% annually with a 0.3% monthly decline, surpassing forecastsMarket expectations for a Federal Reserve rate increase in September have diminished significantlyBTC stabilized around $64,830 on July 16 amid escalating geopolitical tensions between the U.S. and IranMarket participants identify $67,200 as the critical resistance zone for a potential rally toward $70,000Bitcoin surged to a three-week peak on Wednesday following two consecutive days of U.S. inflation readings that came in below market expectations.Bitcoin (BTC) PriceThe BTC/USD pair touched $65,500 on July 15, marking the first time the digital asset reached this level since June 22, based on TradingView data.The rally followed the release of June’s Producer Price Index, which showed a 5.5% annual increase accompanied by a 0.3% monthly contraction. According to the Bureau of Labor Statistics, the monthly decrease was primarily attributed to a 1.4% reduction in goods pricing.BREAKING: June PPI Inflation falls to 5.5%, below expectations of 6.2%.Core PPI Inflation fell to 4.7%, below expectations of 5.2%.Month-over-month PPI inflation fell -0.3%, the biggest decline since April 2025.The odds of rate hikes are declining further.— The Kobeissi Letter (@KobeissiLetter) July 15, 2026This came on the heels of Tuesday’s Consumer Price Index data, which similarly undershot expectations even as crude oil costs rose due to escalating tensions in the Middle East involving the United States and Iran.Economist Mohamed El-Erian weighed in on the PPI data, describing the numbers as “much better-than-expected” and suggesting they would “boost equities and further temper market expectations for upcoming interest rate hikes.” His remarks captured a broader recalibration of sentiment toward risk-oriented assets.Market analysis platform The Kobeissi Letter observed that “inflation expectations continue to decline,” referencing decreased probability metrics for Federal Reserve rate hikes on the Polymarket prediction platform.Data from CME Group’s FedWatch Tool supported this narrative, indicating that a 0.25% rate increase at the September Federal Open Market Committee meeting is no longer viewed as the most likely scenario.Critical Resistance Zones Under ScrutinyTrader Daan Crypto Trades identified $65,600 and $67,200 as significant liquidity thresholds above current pricing. In an X platform post, he explained that successfully breaching $67,200 “would turn this into a bigger move” and position Bitcoin for advancement into the $70,000+ territory. He further observed that Bitcoin is nearing its Bull Market Support Band, currently positioned near $70,000, and that a confirmed weekly breakout with successful retest would indicate a major timeframe bottom formation.$BTC Is closing in on its Bull Market Support band again. The band now sits at the $70K mark which would be the next logical target upon a break above $67K.In May, Bitcoin attempted to break above the BMSB but failed to hold it on the retest and proceeded to make new lows… pic.twitter.com/CbDksxI9me— Daan Crypto Trades (@DaanCrypto) July 15, 2026Analyst Rekt Capital highlighted that BTC is nearing its 50-month exponential moving average, a technical level that has historically served as a rejection point during bear market phases.BTC Consolidates Lower on July 16By July 16, Bitcoin had retreated to $64,830, representing a 0.2% daily decline, though maintaining approximately 1.6% weekly gains.Ongoing hostilities between the United States and Iran continued to dampen market sentiment, with both nations engaged in military exchanges for five straight days. Concerns over potential disruptions to oil transit through the Strait of Hormuz kept energy prices elevated and markets anxious about possible inflation acceleration in subsequent months.A broader selloff in semiconductor stocks also contributed to diminished risk appetite on Thursday.Bitcoin was trading with approximately 1.6% weekly gains as of July 16.The post Bitcoin (BTC) Surges Past $65K as U.S. Inflation Data Softens — $70K Target in Sight appeared first on Blockonomi.