I’m watching one number today before deciding which way this market wants to move: CPI.
Expectations are 2.4% YoY for core and 3.4% for headline.
If CPI comes in hotter than expected, hopes for Fed cuts could take another hit, the dollar could strengthen, and risk-off pressure could build across markets, $BTC included.
If the number comes in cool or right in line with expectations, that pressure should ease. And that’s where things could get interesting for $BTC, with the potential for a short squeeze higher.
Looking at the heatmap, the biggest long liquidation clusters below spot are around $70,767 ($1.11B), $69,512 ($1.07B), and $62,236 ($1.03B).
A hot CPI could push Bitcoin lower toward those levels. Once longs start getting liquidated, the forced selling can add even more fuel to the move.
On the other side, there are sizeable short clusters around $85k–$87k, ranging from roughly $358M to $444M.
So if we get a cooler CPI, those levels could become the target for an upside squeeze.
CPI is the trigger. The heatmap shows where the market could go once that trigger hits.
What are your thoughts?
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