ME News reports that on May 10 (UTC+8), Bitcoin may face weaker support ahead of the upcoming U.S. inflation report compared to the previous two CPI data releases, increasing the risk of a pullback to $70,000. The Cleveland Fed’s latest real-time inflation forecast estimates that April’s CPI rose year-over-year to 3.56%, up from 3.3% in March; monthly CPI is projected at 0.45% (below 0.9%), core CPI year-over-year at 2.56% and month-over-month at 0.21% (previously 2.6% and 0.2%). The official April CPI report will be released on May 12. This keeps the inflation landscape complex—despite a slowdown in monthly momentum and relatively stable core inflation, overall CPI is still expected to accelerate again. This is not an ideal environment for risk assets. A stronger annual CPI reading could reinforce the Fed’s view that rapid rate cuts remain difficult, often pressuring speculative assets like Bitcoin. However, Bitcoin previously avoided deeper corrections even amid hotter-than-expected CPI reports. After the March CPI report showed overall inflation rising from 2.4% in February to 3.3%, BTC prices surged over 15%. One key reason was institutional buyers absorbing more than 500% of the newly mined Bitcoin supply, with Strategy leading the charge. But this support now appears weakened: Strategy has paused its BTC purchases, and its STRC preferred shares continue trading below their $100 par value. When STRC trades below par, the efficiency of issuing new shares declines, limiting Strategy’s ability to raise fresh capital for additional Bitcoin purchases. Analyst Killa suggests large investors may begin reducing risk exposure around the inflation report, citing similar cautious patterns observed around the 2025 CPI events. He stated: “The key support level is the weekly open at $78,600; if breached, the next downside target lies between $74,000 and $75,000.” Technically, Bitcoin is forming a classic ascending wedge on the daily chart—a pattern typically viewed as a bearish reversal signal. As of Sunday, BTC is advancing toward the wedge’s apex near $84,000, where the two trendlines converge. A breakdown from this level could trigger a drop toward the wedge’s measured downside target near $70,000. Conversely, a breakout above the apex—especially if coinciding with the 200-day EMA—could fully negate the bearish structure, with the next upside target in the $90,000–$95,000 range. (Source: BlockBeats)
Bitcoin Risks Falling to $70,000 Amid Expected April CPI Increase
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Summary
Bitcoin faces a potential breakdown near $84,000 as risk appetite remains cautious ahead of the U.S. April CPI report. The Cleveland Fed forecasts the CPI to rise to 3.56% year-over-year, up from 3.3% in March. A higher reading could delay Fed rate cuts, putting pressure on speculative assets. Altcoins may also come under pressure if the inflation data reinforces expectations of tighter monetary policy. The report is due on May 12.
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