Bitcoin experienced a price correction on May 12, dropping to $102,388 from an intraday high of $105,819, possibly due to de-risking ahead of the May 13 Consumer Price Index (CPI) report. Despite this correction, the overall market structure and qualitative fundamentals remain bullish, suggesting a recovery could be imminent. Following positive news around the US-China trade talks, Bitcoin managed a strong rally, yet traders seemed hesitant as the price struggled to maintain levels above $104,000. An analysis from Glassnode indicated that while new demand is evident, profit-taking is also increasing, potentially leading to brief consolidation in the market. Traders reacted to the uncertainty, closing positions ahead of tomorrow's CPI report. Spot purchasing during the past week significantly contributed to Bitcoin's previous gains, raising questions about future buying momentum. The market's performance post-CPI will be crucial in determining if spot and margin longs can re-enter effectively as Bitcoin continues to adopt within traditional finance and regulatory landscapes improve.

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