Bitcoin Faces Potential Pullback as Inflation Data Approaches
- Cleveland Federal Reserve nowcast projects April headline CPI to rise to 3.56% year over year, up from 3.3% in March.
- Bitcoin’s rising wedge pattern suggests a potential decline toward $70,000.
- The Fed estimates a 0.26% rise in headline inflation for April.
- Institutional buyers previously absorbed over 500% of the newly mined Bitcoin supply.
- Analysts indicate key support levels at $78,600, with potential downside targets of $74,000–$75,000.
The upcoming inflation report is critical for risk assets like Bitcoin, as a firmer CPI reading could limit the Fed’s ability to cut rates quickly, impacting speculative trades such as Bitcoin.
With Bitcoin currently facing a rising wedge pattern and support weakening, it may be poised for a pullback toward $70,000 if key levels are breached.(Source)
