Bitcoin’s (BTC) surge towards new highs was interrupted as traders took profits following its rise above $122,000, resulting in a decrease to $118,500. This substantial retreat left Bitcoin 2.8% short of its recent peak, but it managed to still show a 0.4% gain over the past day.
Key Points
- Bitcoin’s significant overnight rise above $122,000 experienced a pullback, dropping prices to a level below $119,000 during the U.S. trading session.
- Ethereum maintained a price above $4,200, while other major altcoins like SOL and DOGE experienced declines of 3% to 4%.
- Analysts from Bitfinex noted that Bitcoin’s future movement will be influenced by upcoming U.S. Consumer Price Index (CPI) and Producer Price Index (PPI) inflation data, with volatility expected as these reports are released.
Analyst Insights
James Van Straten, a senior analyst at CoinDesk, emphasized that the recent upward trend in Bitcoin has resulted in a gap in the CME futures market, which only operates during weekdays. This gap occurred between the closing price on Friday ($117,430) and the opening price on Monday ($119,000), indicating a potential for Bitcoin to revisit this level in the near future.
As the week progresses, the impending U.S. CPI report is expected to be a major catalyst for market movements, followed by PPI data.
According to the Bitfinex analysts, the market’s reaction to these economic indicators may lead to significant fluctuations in Bitcoin’s price, possibly pulling back to levels around $110,000 as traders brace for heightened volatility with macroeconomic data on the horizon.
