Bitcoin (BTC) Price Action Is Under Renewed Pressure Post-US CPI Data Release

Bitcoin's (BTC) price action is under renewed pressure post-US CPI data release on Wednesday as revealed by a recent analysis by Negentropic.

Bitcoin Price Drops Despite CPI Data-Fueled Rally, Raising Concerns Of Further Downside Movements. Bitcoin’s price experienced a brief rebound to the $98,000 level following the release of the United States Consumer Price Index (CPI) data, which had instilled hopes of a rally among investors.

However, a few hours into the upward price move, BTC’s price began to drop once again. As prices now observe bearish movements, crypto analysts believe that the drop could extend toward key support levels.

Bitcoin’s price action is facing renewed selling pressure post-US CPI data release on Wednesday, as noted in a recent analysis by Negentropic, co-founder of the world-leading on-chain data and financial platform Glassnode.

The event seems to have brought immediate volatility for the flagship asset, just as Negentropic had earlier predicted, which caused uncertainty in the market. During unfavorable conditions, BTC risks experiencing a price breakdown if it fails to hold key support levels.

After an inflation report that came out hotter than anticipated, Negentropic highlighted that BTC acquired liquidity at the $94,000 level and topped out at $98,000. However, the crypto asset is now retracing from the $96,000 mark.

This development comes as BTC has seen poor network performance over the past few days. With weak liquidity coinciding with the decreasing network growth, BTC’s short-term outlook suggests bearish signs.

In the event that these negative trends continue, Negentropci believes that BTC’s next move might be to the downside, targeting the $92,000 support level. As a result, the market expert has advised investors to remain cautious during these uncertain times.

Daan Crypto Trades, a crypto analyst and investor, has also examined Bitcoin’s liquidity grab following the US CPI data report. According to Daan Crypto Trades, BTC took most of the liquidity on the lower time frames.

Moreover, the expert noted that after all these lower highs in the past few weeks, there is still a lot of liquidity left up higher. Should BTC be able to reverse this local downward trend, it could serve as a trigger for a move to the upside.

Meanwhile, the $90,000 level is the danger zone where the analyst expects many longs to be stopped out since it is the range low. Also, the level marks an area where Bitcoin’s price has seen several bounces.

A Shift In BTC’s Market DynamicsDespite BTC’s waning performance causing minimal losses, it is more substantial to focus on the trend of profit changes rather than the total holder losses, according to CryptoQuant’s verified author Axel Adler Jr. During the last consolidation phase near $70,000, it took the market two more months to build a new impulse.

Meanwhile, the market dynamics have changed in the ongoing phase largely influenced by news surrounding Donald Trump’s administration and recognition of BTC as a strategic reserve. “In essence, this could drastically accelerate the development of a new trend unlike in previous macrocycles,” stated Adler.