Bitcoin Faces Potential Pressure Ahead of U.S. April CPI Data Release

Market analysis suggests that Bitcoin may encounter increased pressure as the U.S. April Consumer Price Index (CPI) data is set to be released on May 12. According to Odaily, the latest forecast from the Cleveland Federal Reserve indicates that the U.S. April overall CPI may rise to 3.56% year-on-year, up from 3.3% in March. This could reinforce market expectations that the Federal Reserve may find it difficult to lower interest rates in the short term, thereby exerting pressure on Bitcoin and other risk assets. Analysts note that although Bitcoin has remained strong following previous higher-than-expected inflation data releases, current market support has weakened compared to earlier periods. Particularly after Strategy halted Bitcoin purchases, institutional absorption capacity for new Bitcoin supply has decreased, potentially increasing market sensitivity to CPI data. On the technical front, Bitcoin's daily chart is forming a classic "rising wedge" pattern. If the price falls below the critical support level of approximately $84,000, it may further decline towards the $70,000 area. Conversely, if it successfully breaks through the 200-day moving average resistance, it could open up an upward space between $90,000 and $95,000.