Key Takeaways:
Bitcoin exhibits a bearish breakout from an ascending channel, with the risk of profit-taking near $106,000.
A lower-than-expected US Consumer Price Index (CPI) print could boost Bitcoin, but a higher CPI may increase bearish pressure, leading to a price drop below $100,000.
Bitcoin (BTC) price reached an intraday high of $105,800 on May 12 but posted a 3% dip to $101,400 during the New York trading session. On the lower-time frame (LTF) chart, BTC oscillated between an ascending channel pattern before exhibiting a bearish breakout below the bottom range of the pattern.
Bitcoin 1-hour chart. Source: Cointelegraph/TradingView
With respect to BTC’s stalling bullish momentum, data analytics platform Alphractal noted that BTC re-testing nearing $106,000 resistance levels increased the likelihood of profit-taking risks. As illustrated in the chart, Bitcoin currently approaches the “Alpha Price” zone, where long-term holders or whales could take profits, according to Joao Wedson, CEO of Alphractal.
Bitcoin Alpha Price Levels. Source: X.com
From a liquidation standpoint, the risk of a “long” squeeze is also elevated, with over $3.4 billion in leveraged long positions at risk of liquidation if prices drop to $100,000. This range could act as a magnet for price, leading to a retest near the psychological level.
Bitcoin exchange liquidation map. Source: CoinGlass
Related: Bitcoin all-time high cues come as US-China deal sends DXY to 1-month high
CPI data looms as Bitcoin traders de-risk
The current BTC correction might reflect traders de-risking ahead of the US Consumer Price Index (CPI) release on May 13. Previously, March’s CPI, released April 10, was 2.4%, down from February’s 2.8%, despite a forecast of 2.5%. April’s CPI is forecasted to remain at 2.4%, due to steady energy prices amid balanced oil production and moderating wage growth, easing pressure on price increases.
US Consumer Price Index data. Source: Investing.com
A lower-than-expected CPI (potentially third in a row) could be bullish for Bitcoin, potentially signaling Federal Reserve rate cuts in 2025, boosting risk assets like equities…
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