1 month ago
Key Takeaways:
Bitcoin exhibits a bearish breakout from an ascending channel, with the hazard of profit-taking adjacent $106,000.
A lower-than-expected US Consumer Price Index (CPI) people could boost Bitcoin, but a higher CPI whitethorn summation bearish pressure, starring to a terms driblet beneath $100,000.
Bitcoin (BTC) price reached an intraday precocious of $105,800 connected May 12 but posted a 3% dip to $101,400 during the New York trading session. On the lower-time framework (LTF) chart, BTC oscillated betwixt an ascending transmission signifier earlier exhibiting a bearish breakout beneath the bottommost scope of the pattern.
Bitcoin 1-hour chart. Source: Cointelegraph/TradingViewWith respect to BTC’s stalling bullish momentum, information analytics level Alphractal noted that BTC re-testing nearing $106,000 absorption levels accrued the likelihood of profit-taking risks. As illustrated successful the chart, Bitcoin presently approaches the “Alpha Price” zone, wherever semipermanent holders oregon whales could instrumentality profits, according to Joao Wedson, CEO of Alphractal.
Bitcoin Alpha Price Levels. Source: X.comFrom a liquidation standpoint, the hazard of a "long" compression is besides elevated, with implicit $3.4 cardinal successful leveraged agelong positions astatine hazard of liquidation if prices driblet to $100,000. This scope could enactment arsenic a magnet for price, starring to a retest adjacent the intelligence level.
Bitcoin speech liquidation map. Source: CoinGlassRelated: Bitcoin all-time precocious cues travel arsenic US-China woody sends DXY to 1-month high
CPI information looms arsenic Bitcoin traders de-risk
The existent BTC correction mightiness bespeak traders de-risking up of the US Consumer Price Index (CPI) merchandise connected May 13. Previously, March’s CPI, released April 10, was 2.4%, down from February’s 2.8%, contempt a forecast of 2.5%. April’s CPI is forecasted to stay astatine 2.4%, owed to dependable vigor prices amid balanced lipid accumulation and moderating wage growth, easing unit connected terms increases.
US Consumer Price Index data. Source: Investing.comA lower-than-expected CPI (potentially 3rd successful a row) could beryllium bullish for Bitcoin, perchance signaling Federal Reserve complaint cuts successful 2025, boosting hazard assets similar equities and cryptocurrencies. Conversely, a higher-than-expected CPI could beryllium bearish, raising ostentation fears and strengthening the dollar, pressuring BTC.
If bearish unit persists connected BTC charts adjacent aft the CPI print, an contiguous cardinal country of involvement remains betwixt $100,500 and $99,700, a just worth spread (FVG) connected the four-hour chart.
Another FVG remains betwixt $98,680 and $97,363, which would correspond an 8% correction from the caller highs.
Bitcoin 4-hour chart. Source: Cointelegraph/TradingViewRelated: Bitcoin, altcoins poised to rally connected US-China tariff agreement
This nonfiction does not incorporate concern proposal oregon recommendations. Every concern and trading determination involves risk, and readers should behaviour their ain probe erstwhile making a decision.
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