Bitcoin rebounds on flat US CPI as oil price cools on 400M barrel release

Bitcoin price reacted positively as US CPI inflation conformed to market expectations, as traders stayed in wait-and-see mode.

Bitcoin (BTC) broke back above $70,000 around Wednesday’s Wall Street open as US inflation data soothed anxious markets.

Bitcoin bounces around a narrow range as US inflation data offers a modest tailwind.

Oil prices stay lower as an emergency release of 400 million barrels is confirmed.

BTC price expectations focus on future liquidations in the mid-$60,000 zone.

Data from TradingView showed BTC price action eking out modest gains, while failing to match local highs from the day prior.

The February print of the US Consumer Price Index (CPI) was in line with expectations at 2.4% year-on-year, per data from the Bureau of Labor Statistics (BLS). 

“Over the last 12 months, the all items index increased 2.4 percent before seasonal adjustment,” it confirmed in an official statement.

This was a relief for risk assets already on edge over geopolitical instability and its potential impact on inflation. The Middle East conflict and global oil supply squeeze, however, were likely only to be truly reflected in March’s inflation data.

“The market will now await March's data,” trading resource The Kobeissi Letter thus wrote in a response on X.

Other recent inflation gauges missed anticipated levels both to the upside and downside, making for a shaky overall picture of inflationary forces even before events in Iran.

Oil, a key risk factor for CPI going forward, stayed below the $90 mark on the day as the International Energy Agency (IEA) approved the emergency release of 400 million barrels — the largest such release ever recorded. 

With price still rangebound, Bitcoin market participants chose not to bet big up or down.

Related: Bitcoin faces ‘highly volatile’ setup as bulls eye return to $80K by month-end

“Very simple; buy the lower bounds, sell the higher bounds,” trader, analyst, and entrepreneur Michaël van de Poppe told X followers. 

Trader Lennaert Snyder eyed downside liquidity for a potential local low, suggesting that this could come at around $65,000.

$BTC is compressing pre-CPI.Bitcoin swept ~$71,563 liquidity and rejected like I mentioned yesterday.I'm already in some shorts, and I'm willing to add if we get a MSB by losing the ~$69,268 low.My short target will be the liquidity at ~$65,957. Letting 10% open for a… pic.twitter.com/DN3rb9lTha

Data from monitoring resource CoinGlass put 24-hour crypto market liquidations at $240 million, with short positions accounting for a larger slice of the total.

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Source: CoinTelegraph