Bitcoin Crash Ahead Of Crucial Inflation Data: Will Buyers Survive?

Bitcoin is down at spot levels but remains within a bullish formation. Of note, after yesterday’s slip, gains of April 8 have been reversed. Though it is a dent for buyers, they are optimistic. However, how today pans out will determine whether prices will snap back and align with Monday’s gains or bears will press lower toward $65,000.

When writing, Bitcoin is down 3% in the past 24 hours. At the same time, prices over the past trading week are up 4%. Yesterday’s dip didn’t dash sentiment. Looking at participation in the previous trading day, it appears that participants exited since trading volume is down 7% to slightly over $33 billion. Dropping prices meant the total market cap is down 3% to over $1.3 trillion.

Whether buyers will reverse gains remains to be seen. However, the following Bitcoin news might influence price action in the days ahead:

• One analyst on X is urging users to double down on buying every dip before halving. He believes that not only will prices rally, but the surge will price out most retailers in the coming months. Halving, observers note, might create a supply crisis due to increased scarcity.
• Today, eyes will be on the United States CPI. This reading will be key as it could influence whether the Federal Reserve will slash rates as originally projected or slow down.

Bitcoin Price Analysis

BTC/USD is in an uptrend, even with losses of April 9.

From the current setup, long-term traders might buy the dip since prices are within a broader bull flag and wedge.

Meanwhile, swing traders will be looking at how events evolve today.

If prices drop below the lower trend line, marking the base of the wedge, BTC could slip to $65,000 and later $60,000.

Conversely, any breakout completely reversing losses of April 9 above $74,000 might accelerate the uptrend towards $80,000 and $100,000.