Bitcoin sellers battle US buyers as CPI inflation drops for the first time since mid-2024

BitcoinBTCWall Street experienced a classic stock market selloff on March 12. Bears temper a welcomed US inflation slowdown on 12th March.

BTC reverses price at bull market trendline

Data from Cointelegraph Markets Pro You can also find out more about the following: TradingView Bitstamp’s BTC/USD reached a high of $84,437 in three days before it reversed.

In January, US Consumer Price Index came in lower than expected at 2.8%. data Bureau of Labor Statistics, BLS.

“Core CPI inflation FALLS to 3.1%, below expectations of 3.2%,” The Kobeissi Letter: A trading resource added Part of the response to X. 

“This marks the first decline in both Headline and Core CPI since July 2024. Inflation is cooling down in the US.”

But the positive news was only temporary as Wall Street’s trading began, and the typical selling pressure returned to the cryptocurrency markets.

Bitcoin fell from $82,400 to the current level of the open at the moment.

Rekt capital, a popular analyst and trader who has been observing the market for a while now, is cautiously optimistic about BTC’s price.

“The latest Bitcoin Daily Close means that price has began the process of exiting its recently filled CME Gap after turning it into support,” He told X followers, referring to the difference between session closing and opening levels on CME Group’s Bitcoin futures — a common short-term price influence.

“Any dips into the top of the CME Gap would constitute a post-breakout retest attempt to fully confirm the exit from this CME Gap. Initial signs of that retest occurring already.”

Fellow trader Daan Crypto Trades focused on the 200-day simple and exponential moving averages (SMA/EMA) — classic bull market support trendlines The current rates are currently $83,550 a $85,650 respectively.

“Bulls got work to do here to get back above the Daily 200MA/EMA. Last year we had the same thing and price chopped around these levels for 3+ months,” His latest X Analysis noted.

Bitcoin ETF Outflows Point to “growing caution”

QCP Capital, a trading firm that focuses on macroeconomics, suggested the CPI reading for the day could influence the Federal Reserve’s decision on interest rates next week.

Related: Bitcoin whales hint at $80K ‘market rebound’ as Binance inflows cool

“With inflation concerns lingering and macro risks mounting, the CPI print will be a key determinant of whether the disinflationary trend will hold, or volatility intensifies in the near term,” It wrote in its “Asia ColorMarket Update

QCP’s support for $82,000 was solidified, but institutional investors were cautioned by the trends.

“Meanwhile, Bitcoin ETFs saw a significant net outflow of $153.87 million, led by Grayscale’s Bitcoin Trust (GBTC), which recently offloaded 641 BTC, valued at $56.45 million,” The conclusion was made, or referencing netflows Bitcoin Exchange-Traded Funds (ETFs) from US Spot 

“This brought GBTC’s total holdings down to 195,746 BTC, worth around $17.24 billion. This signals growing caution among institutional investors.”

This article contains no investment recommendations or advice. Each investment or trading decision involves some risk. Readers should do their own research before making any decisions.