Bitcoin Holds Steady Amid CPI Anticipation
Bitcoin (BTC) continues to trade within a narrow range of $91,200–$91,400 as the market waits for the release of the US Consumer Price Index (CPI) at 13:30 UTC. This crucial inflation data is expected to influence cryptocurrency price trends significantly, setting the stage for short-term market volatility.
Key Market Movements
As of now, BTC remains above the $90,000 mark, which has established itself as a strong accumulation zone, particularly for large-scale investors known as “whales.” On-chain data reveals that whales have collectively acquired over 56,000 BTC since mid-December, even as smaller retail investors opted to sell during this period of consolidation.
Ethereum (ETH) is hovering above $3,100, while Solana (SOL) stays steady near $140. Outside the crypto sphere, gold is grabbing attention, reaching record highs above $4,600, a clear reflection of growing market uncertainty leading up to the CPI release.
Technical Analysis: BTC at a Crossroads
From a technical standpoint, Bitcoin is trading within a tight Bollinger Band compression zone, a pattern often preceding considerable price moves. The cryptocurrency is also above both its 50-day and 200-day moving averages, signaling overall bullish momentum in the broader trend.
Analysts have identified $93,997 as a critical resistance level. Should BTC achieve a daily close above this price point, it could trigger a surge toward $94,250–$95,000. Conversely, a failure to break this resistance might expose Bitcoin to downside risks, with potential support levels at $90,600 and $88,000.
Impact of the CPI Report
The anticipated US CPI report is forecasted to influence markets significantly. Analysts predict year-on-year inflation to arrive at 2.7% for both headline and core metrics. A “dovish” CPI result could push Bitcoin to $93K or above, reducing selling pressure and potentially triggering short liquidations toward $95,000. On the other hand, a “hawkish” CPI reading might lead to a dip below the $90,000 mark, introducing heightened short-term volatility.
It’s worth noting that the current geopolitical climate, including tensions between former President Donald Trump and Federal Reserve Chair Jerome Powell, may also introduce unexpected volatility, even if CPI figures meet market expectations.
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Key Takeaways
Today’s US CPI release will act as a defining moment for Bitcoin and broader cryptocurrency markets. Investors should brace for potential price swings as inflation data continues to shape market sentiment. Regardless of short-term challenges, Bitcoin’s long-term trajectory remains promising, with whales showing sustained confidence.
