Bitcoin (BTC) experienced a volatile day, marking a rebound near $106,100. This movement allowed Bitcoin closes CME gap from the weekend’s futures, located around $107,000. Now, the market’s attention is shifting towards key macroeconomic data to be released on Friday.
BTC price action showed erratic movements after hitting a low of $106,100. Bullish attempts to overcome key resistance failed quickly. This behavior reflects the recent weakness in gold, which lost the $4,000 support level after hitting all-time highs. Analyst ‘Roman’, cited on X, suggested that BTC’s previous rally was driven solely by the drop in gold. The trader also noted that “Binance is hard selling everything.”
The CME gap closure is a technical event closely watched by traders. However, volatility and illiquidity dominate current sentiment. Trader ‘Daan Crypto Trades’ described the price action as “VERY choppy, illiquid and volatile.” The temporary divergence with gold has corrected. Furthermore, the strength of the US dollar index (DXY) continues to pressure risk assets, although it showed a slight pullback.
Can a “soft” CPI save the Bitcoin bulls?
Investors are now in wait-and-see mode. The main focus is the release of the September Consumer Price Index (CPI) this Friday. The trading firm QCP Capital highlighted that this data is the “singular anchor” for the Federal Reserve. This is because the government shutdown freezes other data releases. The health of the global economy depends on these figures. A lower-than-expected CPI, near 0.2%, could reinforce the soft-landing narrative.
If the CPI turns out favorable, QCP Capital anticipates that a weakening DXY would support the “buy the dip” mentality for Bitcoin. For now, data from CoinGlass shows that bid liquidity is strengthening below $107,000. However, analysts warn of potential retests of $100,000 if the macroeconomic data disappoints. Uncertainty defines the short-term outlook.
