Bitcoin struggles at key technical levels, awaits US CPI data for fresh volatility

Key takeaways

• Bitcoin trades around $81,000, maintaining a bullish bias but facing resistance at the 200-day EMA. 
• Traders await the US Consumer Price Index (CPI) data, which could trigger volatility in BTC and risky assets. 

US CPI report could drive volatility for Bitcoin

Bitcoin traders are awaiting the release of the US Consumer Price Index (CPI) for April, scheduled for Tuesday at 12:30 GMT. 

The report is expected to show a sharp increase in inflation, driven in part by higher oil prices amid the ongoing US-Iran tensions.

The monthly CPI is forecast to rise by 0.6%, following March’s 0.9% increase. The annual CPI reading is expected to climb to 3.7%, up from 3.3% in March, marking the highest level since September 2023. Core CPI, excluding food and energy prices, is anticipated at 0.3% for the month and 2.7% year-over-year.

The data will likely shape expectations for future interest rate cuts by the Federal Reserve (Fed), potentially triggering volatility in Bitcoin and other risk assets. 

Additionally, elevated crude oil prices continue to add to inflationary pressures, reinforcing the likelihood of a more hawkish Fed stance, which could weigh on Bitcoin’s upside.

Negative headlines regarding the US-Iran situation could also strengthen the US Dollar (USD) as a reserve currency, further dampening short-term risk appetite.

Despite the uncertain macro environment, Bitcoin’s institutional and corporate demand remains strong, providing support for its price.

Spot Bitcoin ETFs recorded inflows of $27.25 million on Monday, according to CoinGlass data, breaking a two-day streak of outflows from the previous week. 

While these inflows were modest, they reflect a cautious yet positive outlook from investors. If this trend continues, Bitcoin’s price could see further upward movement.

On the corporate side, Strategy (MSTR), led by Michael Saylor, added another 535 BTC to its treasury reserve on Monday, bringing its total Bitcoin holding to 818,869 BTC. 

The company has consistently accumulated Bitcoin over recent months, with an average purchase price of $75,540—above the current market price, adding to the bullish sentiment.

Bitcoin technical outlook: Resistance at 200-day EMA

Bitcoin is trading around $81,000 on Tuesday, maintaining a constructive bullish bias as it holds above the 50-day and 100-day Exponential Moving Averages (EMAs) near $76,700. 

The 50% Fibonacci retracement at $78,962 also provides strong support. However, Bitcoin is currently facing resistance at the 200-day EMA, located around $82,130. 

A break above this level would likely open the path to the next resistance zone around $83,437 (61.8% Fibonacci retracement) and $84,410 (horizontal barrier).

The Relative Strength Index (RSI) on the 4-hour chart is at 55, and the Moving Average Convergence Divergence (MACD) remains mildly positive, suggesting that while momentum is bullish, there are no immediate overbought conditions.

If the rally continues, immediate resistance is seen at the 200-day EMA around $82,130, followed by the 61.8% Fibonacci retracement at roughly $83,437 and the horizontal barrier near $84,410. 

However, if the bearish trend persists, sellers would encounter support at the psychological $80,000 level, ahead of the 50% retracement at $78,962, with the 100-day and 50-day EMAs near $76,647 and $76,248, the channel top around $75,680.