Bitcoin Pulls Back from 3-Month Peak as Traders Brace for Inflation Data

BTC cools off after rally—because nothing terrifies crypto markets quite like old-school economic indicators.

Traders sweat CPI numbers while pretending they’ve ’always been macro-aware.’

Watch the ’digital gold’ narrative crumble if inflation prints hot. Again.

US CPI data 

A portion of the selling that was seen in BTC could be associated with profit taking around the 105k wall and de-risking ahead of the US CPI inflation print today. CPI is expected to confirm that inflation remained unchanged at 2.4% YoY in April, in line with March. Core CPI is expected to ease to 2.8% from 3%. Cooler inflation could signal easing inflationary pressures, which could potentially lead to more accommodative monetary policy, lifting BTC. 

Furthermore, with BTC ETF demand remaining strong amid 4-straight weeks of net inflows, corporate demand also increasing, and regulatory news supportive, the outlook for BTC remains bullish. 

Still no extreme Greed 

The crypto Fear and Greed Index is at 70 in the Greed territory, up from 59 (Greed) last week and 45 (Fear) last month. Interestingly, despite BTC approaching its record high, investors have not become extremely greedy. This could also play in BTC’s favour, suggesting that hype hasn’t yet developed, meaning BTC’s price potentially has more room to run. 

Bitcoin technical analysis 

BTC continues to trade within an ascending channel dating back to early April, running into resistance at 105.7k before correcting lower to 103k. This MOVE lower has brought the RSI out of overbought territory.  

Buyers will look to extend the bullish run, rising above 105.7k to create a higher high towards 109.5k and fresh higher highs. 

Support is seen at 100k, the psychological level. A break below here opens the door to 97k, the previous resistance turned support.