The upcoming release of the US Consumer Price Index (CPI) data is expected to shake up the crypto market, especially Bitcoin. But could this volatility actually be a good thing for Bitcoin’s price?
Will Bitcoin Bounce Back?
A crypto expert and Glassnode co-founder, Negentropic, believes Bitcoin could see a price recovery after the CPI announcement. He expects the CPI data to cause market volatility, but sees potential for a rebound. He notes that Bitcoin is currently holding strong around $95,000, but a dip to $94,000 or even $92,000 could actually be beneficial, allowing the market to consolidate and set up a potential bullish reversal.
The Path to $100,000
Negentropic predicts that if Bitcoin dips and then reclaims the $97,000-$98,500 range, it could rally towards the coveted $100,000 mark. He’s basing this partly on a “Regime Shift” metric, suggesting Bitcoin might have already bottomed out. He acknowledges that even with a retest of $95,000, some choppy trading is likely, but as long as that level holds as support, a bullish trend is possible.
Headwinds Ahead: Selling Pressure
However, the journey to $100,000 isn’t without obstacles. Data from IntoTheBlock shows that around 1.6 million addresses bought 1.57 million BTC at an average price of $97,200. Since Bitcoin is currently trading below that price, these holders are underwater and might sell to break even, creating significant selling pressure. This could make a clean upward breakout challenging.
