Pullback to $119K as CPI, PPI Data Could Bring Volatility

Bitcoin’s (BTC) in a single day push in the direction of recent information met with profit-taking on Monday, knocking costs down to $118,500.

The pullback left bitcoin 2.8% off its session excessive of $122,200, although the biggest crypto remained up 0.4% over the previous 24 hours.

Ether held above $4,200, modestly up 0.8% throughout the identical interval, whereas main altcoins Solana’s SOL (SOL), dogecoin

and Sui’s native token (SUI) slipped 3%-4%.

James Van Straten, senior analyst at CoinDesk, famous that bitcoin’s weekend rally left a niche within the CME futures market, which commerce solely on weekdays, between Friday’s shut at $117,430 and Monday’s open at $119,000. History means that BTC may pull again to revisit and “fill” that hole, he mentioned.

Tuesday’s U.S. Consumer Price Index (CPI) report may very well be the week’s greatest catalyst for merchants, with Producer Price Index (PPI) information following later within the week.

Whether bitcoin’s momentum continues will possible rely upon these U.S. macroeconomic information studies, Bitfinex analysts mentioned in a Monday market report.

“With market sensitivity to macro events running high, traders should prepare for increased volatility and the possibility of a retracement toward $110,000 in the near term,” the Bitfinex analysts wrote.

“We believe that the ranging conditions and oscillation between the range highs and lows will continue, since price is constantly moving above and below the cost-basis of fresh buyers allowing for charged sentiments around key macro data releases,” they added.

Read extra: Watch Out Below: Bitcoin’s Weekend Surge Leaves CME Gap