Analysis: Bitcoin May Face Correction Pressure, Market Turns Cautious Ahead of CPI Release

Odaily Planet Daily News Market analysis indicates that as the US April CPI data is set to be released on May 12, Bitcoin may face greater downward correction pressure. The latest forecast from the Cleveland Fed shows that the year-over-year US headline CPI for April may rise to 3.56%, higher than March's 3.3%, potentially further reinforcing market expectations that the Fed will find it difficult to cut interest rates in the short term, thereby suppressing risk assets like Bitcoin.

The analysis states that although Bitcoin has remained strong after several previous inflation data releases that exceeded expectations, current market support has weakened compared to before. Especially after Strategy paused its Bitcoin purchases, institutions' ability to absorb new Bitcoin supply has decreased, and the market's sensitivity to CPI data may rise again.

On the technical side, Bitcoin's daily chart is forming a classic "rising wedge" pattern. If the price breaks below the key support level of approximately $84,000, it could further decline toward the $70,000 area. Conversely, if it successfully breaks through resistance at the 200-day moving average, the upside potential could open up to the $90,000 to $95,000 range. (Cointelegraph)