March 10 News: As the U.S. Consumer Price Index (CPI) data approaches release, the cryptocurrency market is entering a cautious wait-and-see phase. CPI, as a key macroeconomic indicator, could significantly influence market expectations regarding Federal Reserve interest rate policies and the trajectory of risk assets.
Bitcoin (BTC) has recently rebounded from its February lows, approaching $70,000. Technical charts show that after a correction earlier this year, Bitcoin has gradually recovered. The daily chart indicates that, influenced by tariffs and the Iran situation, prices fell from nearly $95,000 in January, then stabilized between $60,000 and $65,000 in February. The current price has risen back to around $70,000, and analysts consider this level a short-term key resistance.
Market momentum indicators show increasing buying pressure. The daily Money Flow Index (MFI) has risen above 60, indicating improved investor sentiment, but has not yet entered overbought territory. Additionally, the Accumulation/Distribution indicator, which fell sharply in early February, has stabilized, suggesting investors are accumulating positions ahead of macroeconomic events, easing selling pressure.
Historical data shows that Bitcoin prices are sensitive to U.S. inflation expectations, especially when inflation data may influence Federal Reserve rate decisions, often leading to increased market volatility. Market commentary from Morningstar notes that February CPI is expected to rise 0.3% month-over-month, with the annual inflation rate potentially dropping from 3.0% in January to 2.9%. Traders generally believe that upcoming CPI data will be a primary trigger for short-term market fluctuations, with Bitcoin testing current resistance levels or retesting recent support levels, depending on how inflation data influences market expectations.
Overall, the cryptocurrency market is exhibiting cautious adjustment ahead of macroeconomic data releases.
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