- Bitcoin’s push toward new records was stopped by profit-taking, causing a price retreat from a high of $122,200 back to $118,500.
- A technical gap in the CME futures market between $117,430 and $119,000 has created a potential target for a short-term price pullback.
- Upcoming US inflation data, particularly the CPI, is considered the week’s most significant catalyst for potential market volatility.
A promising overnight surge that propelled Bitcoin within sight of new records was cut short by a wave of profit-taking, pulling the leading cryptocurrency back and setting a cautious tone for the week.
The market now holds its breath, caught between the allure of all-time highs and the looming shadow of critical economic data that could ignite significant price swings.
After reaching a session high of $122,200, Bitcoin (BTC) saw its momentum fade, retreating 2.8% to land at $118,500.
Despite the pullback, the digital asset remained slightly positive over a 24-hour period.
In the broader crypto market, Ether (ETH) maintained its position above the $4,200 mark, while major altcoins such as Solana’s SOL (SOL), Dogecoin (DOGE), and Sui’s native token (SUI) experienced modest dips of 3%-4%.
One technical indicator drawing considerable attention from traders is a “gap” left in the CME futures market, which, unlike the 24/7 crypto market, operates only on weekdays.
This created a void between Friday’s closing price of $117,430 and Monday’s higher open at $119,000.[3] James Van Straten, senior analyst at CoinDesk, noted that historical precedent suggests Bitcoin often retraces to “fill” such gaps.
“History suggests that BTC could pull back to revisit and ‘fill’ that gap,” he said.
Economic crosswinds
The market’s next significant directional move may well be dictated by macroeconomic forces.
The release of the US Consumer Price Index (CPI) on Tuesday, followed by Producer Price Index (PPI) data, is circled on every trader’s calendar.
These inflation reports are critical as they heavily influence the Federal Reserve’s monetary policy, which in turn impacts investor appetite for risk assets like Bitcoin.
This sentiment was echoed by analysts at the crypto exchange Bitfinex, who believe the continuation…