Analysis: If the U.S. April CPI exceeds expectations, Bitcoin may retrace to around $70k.

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Deep Tide TechFlow News, May 10, according to Cointelegraph, market analysis suggests that ahead of the release of U.S. April CPI data on May 12, Bitcoin may face greater pullback pressure. The latest forecast from the Cleveland Fed indicates that the U.S. April headline CPI year over year could rise to 3.56%, higher than 3.3% in March, which may further strengthen market expectations that the Federal Reserve will find it difficult to cut interest rates in the near term, thereby weighing on risk assets such as Bitcoin.

Although Bitcoin has remained strong after several prior releases of inflation data that came in higher than expected, current market support has weakened compared with before, and the market’s sensitivity to CPI data may rise again. At present, Bitcoin’s daily chart is forming a classic “rising wedge” pattern; if the price breaks below the key support level of roughly $84,000, it may further dip toward around $70,000. If it can successfully break through the resistance around the 200-day moving average, it may open up upside room of $90,000 to $95,000.

BTC0.78%
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