Bitcoin (BTC) traded near $70,000 on Tuesday, recovering from February lows as the crypto market enters a cautious waiting period ahead of Wednesday's U.S. Consumer Price Index (CPI) report — a key macro indicator that could shape interest rate expectations and risk asset performance.
Bitcoin’s Recovery After February Pullback
The largest cryptocurrency by market cap fell from January highs around $95,000 amid tariff concerns and Iran tensions, then stabilized in the $60,000–$65,000 range in February. Since then, it has gradually climbed back toward the $70,000 level, an area analysts view as significant resistance.
Technical Signals Point to Accumulation
The Money Flow Index (MFI) on the daily chart has risen into the mid-60s, indicating strengthening buying pressure without entering overbought territory. Meanwhile, the Accumulation/Distribution indicator has leveled off after a sharp drop in early February, suggesting that selling pressure is easing as investors accumulate positions ahead of the macro event.
CPI Data and Its Potential Market Impact
Historical patterns show crypto markets often react sharply to CPI surprises, especially when they alter forecasts for Federal Reserve policy. Morningstar economists expect February CPI to rise 0.3% month-over-month, bringing the annual rate down to 2.9% from 3.0% in January. A deviation from this estimate could trigger heightened volatility, with Bitcoin either testing nearby resistance or revisiting recent support levels.
Traders are positioning for a binary outcome, while on-chain data shows no signs of large-scale liquidation or panic, reflecting a cautious but not fearful market mood.