Crypto markets are entering a cautious mode as traders prepare for the upcoming US Consumer Price Index (CPI) report, a key macroeconomic indicator that can shape interest rate policy expectations and the performance of risk assets.
Conclusion
- Bitcoin rallies to $70,000 ahead of upcoming US inflation report.
- Technical indicators are showing a moderate rally and acceleration after February’s reversal.
- Analysts expect increased volatility in crypto markets depending on whether the inflation data surprises upwards or downwards.
The crypto market is paying attention to the CPI data as Bitcoin returns to $70k
Bitcoin (BTC), the largest cryptocurrency by market capitalization, traded near $70,000 on Tuesday after recovering from February lows.
Market participants are closely watching the inflation data due on Wednesday, which could influence the next steps of the Federal Reserve policy and cause instability in global financial markets.
Technical charts show that Bitcoin is recovering moderately after a long pullback earlier this year. The daily chart shows the asset falling below $95,000 in January amid tariffs and tensions with Iran. Bitcoin then stabilized in the $60,000-$65,000 range in February.
Since then, Bitcoin has gradually returned to the level of $ 70,000, which analysts consider as an important area of resistance.
Current indicators show improvement in feelings. The Money Flow Index (MFI) rose to the mid-60s in the daily framework, indicating that buying pressure is intensifying, but has not yet entered overbought territory.
Meanwhile, the Accumulation/Distribution indicator has stabilized after a sharp decline in February, suggesting that selling pressure may ease as investors accumulate positions ahead of the macro event.
Macro data remains a key driver of near-term sentiment.
Historical data comparing Bitcoin price indicators with US inflation trends shows that crypto markets often react to changes in CPI expectations, especially when inflation surprises change forecasts for Federal Reserve interest rate decisions.
Economists expect consumer prices to rise 0.3% in February, according to Morningstar’s market overview. This will allow the rate of inflation in January to decrease to 2.9% from 3.0%.
Traders expect the upcoming CPI release to act as a major trigger for volatility, and Bitcoin is likely to test nearby resistance or revisit recent support levels depending on how inflation data shapes market expectations.
