Bitcoin (BTC) has faced a sharp 4.5% decline, sinking to $80,350 and triggering over $1 billion in liquidations on long positions. As the market braces for the release of US Consumer Price Index (CPI) data this week, analysts warn of further downside risks, with BTC potentially testing the $75,000 level.
Key Technical Indicators Signal Bearish Momentum
Veteran trader Peter Brandt has identified a bearish pennant pattern and a double top formation in Bitcoin’s price chart, both indicating potential further losses. Key observations include:
- Double top formation at ~$108,100.
- Pennant retest near $95,321, followed by a breakdown.
- Weak support at $81,513, with possible downside targets of $78,000 and $75,000.
Brandt’s analysis suggests that Bitcoin has completed the bearish pattern, reinforcing the possibility of further selling pressure.
Institutional Outflows and Bearish Sentiment
The broader cryptocurrency market has seen $170 billion in losses over the last 24 hours, and institutional interest appears to be waning. Bitcoin spot ETFs saw net outflows of $799 million between March 3 and March 7, with Fidelity’s ETF losing $201 million, indicating a cooling of investor sentiment.
US CPI Data to Influence Market Sentiment
The upcoming US CPI report on March 12 will be a key macroeconomic factor influencing Bitcoin’s price. Economists expect inflation to show gradual progress, with core CPI (excluding food and energy) projected to rise 0.3% month-over-month, according to a Bloomberg survey.
If inflation data comes in hotter than expected, the Federal Reserve may delay rate cuts, adding further pressure to risk assets like Bitcoin. On the other hand, if CPI shows signs of cooling, BTC may find renewed support.
Outlook: Bear Market or Temporary Correction?
While some analysts believe Bitcoin is entering a bear market, others argue that the current downturn is a healthy correction following BTC’s rapid ascent past $90,000. With institutional outflows, key technical breakdowns, and macroeconomic uncertainties, Bitcoin’s short-term trajectory remains bearish, but long-term fundamentals remain strong.
Traders will closely watch CPI data and BTC’s ability to hold support near $78,000–$75,000 for clues on the next major move.
Related topics:
Analyst Warns XRP Price Could Drop to $1.5 If Key Level Isn’t Held
US SEC Drops Case Against Cumberland DRW in Crypto Securities Dispute
El Salvador’s Nayib Bukele Confirms Bitcoin Buying Continuation Despite IMF Warning
