Bitcoin fell over 2% on Wednesday as investors remained on the sidelines ahead of the release of U.S. CPI data later today. The monthly CPI reading for February is expected to come in hotter at 0.3%, with the year-over-year reading holding steady. Bitcoin price movement has fallen as traders braced for the US Bureau of Labor Statistics to publish the February Consumer Price Index (CPI) data at 8:30 a.m. ET. Core CPI figures are estimated to come in at 0.2% on a monthly basis and 2.5% YoY.
If the CPI print instead comes out hotter than expected, it could trigger hawkish sentiment, while a cooler reading could encourage bulls to take control. At press time, markets virtually see zero chance of a rate cut in March and minimal 25 bps reduction expectations in April, per the CME FedWatch tool. For now, $71,000-$72,000 appears to stand as the next major resistance area for Bitcoin, which bulls have struggled to penetrate. On the other hand, a drop below the $66,000-$67,000 support zone could open the door for a deeper correction.
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