Bitcoin faces short-term pressure approaching $70,000 ahead of US CPI data release

March 11 News: As investors remain cautious ahead of the upcoming U.S. CPI data release later today, Bitcoin (BTC) price has fallen over 2%. According to crypto.news, Bitcoin dropped from a intraday high of $71,612 on Tuesday to close at $69,936 on Wednesday, showing clear short-term pressure.

Economists expect the U.S. Bureau of Labor Statistics to report a 0.3% month-over-month increase in February CPI, higher than January’s 0.2%, with year-over-year growth remaining at 2.4%. Core CPI is expected to rise 0.2% month-over-month, with a 2.5% year-over-year increase. Although inflation data is crucial for Federal Reserve monetary policy decisions, since February’s figures do not yet reflect the surge in oil prices, Bitcoin’s initial reaction after the data release may remain relatively stable.

Recent Middle East tensions have impacted market sentiment, with Iran attacking ships passing through the Strait of Hormuz, threatening global energy supplies and pushing crude oil prices above $100 per barrel. Analysts suggest this event could temporarily boost Bitcoin’s safe-haven demand, but overall trend remains sideways.

From a technical perspective, Bitcoin currently faces a key resistance zone between $71,000 and $72,000, which bulls find difficult to break in the short term. A drop below the support area of $66,000 to $67,000 could trigger a larger correction. The CME FedWatch tool indicates that the market almost fully expects no rate cut in March, with only a 25 basis point cut priced in for April. Typically, rising expectations of Fed rate cuts can strengthen crypto assets; conversely, expectations of no cuts may pressure Bitcoin.

In summary, investors should exercise caution ahead of today’s CPI release, closely monitor Bitcoin’s short-term reactions to inflation data and geopolitical risks, and pay attention to key support and resistance levels to assess potential corrections and rebounds.