Important points:
-
After heavy daily losses, Bitcoin has retreated to near $106,000 as gold struggles to find support.
-
BTC price action continues to be in a low timeframe liquidity game after failing to hold support higher.
-
CPI Week begins to hit crypto and risk assets hard.
After the start of Wall Street trading on Wednesday, Bitcoin (BTC) was stuck at $108,000 as gold chased new lows.
Bitcoin vs. Gold Celebration Ends With Price Reversal
Data from Cointelegraph Markets Pro and TradingView tracked BTC’s volatile price movement after rising to $106,100 earlier in the day.
Market commentators have warned of a retest of the $100,000 level or lower in the future, and attempts to break through the higher level resistance have failed.
The resurgence of the US dollar strength has further exacerbated the problems for Bitcoin bulls, but the US dollar index (DXY) has still fallen at the time of writing.
Meanwhile, gold is at risk of losing support at $4,000, continuing its steep decline from all-time highs.
“Again, the only reason we have gone up is because of gold dumping,” crypto trader Roman wrote on X, referring to the local high above $114,000.
“I don’t think there is any legitimacy to this move and Binance is pushing everything.”
Data from monitoring resource CoinGlass showed that bid liquidity strengthened below $107,000 and price will soon attack a new sell overhead.
“This is a key area before retesting Friday’s lows, and we don’t see much below that,” continued trader Daan Crypto Trades.
Daan Crypto Trades noted that prices closed a recent weekend “gap” in the CME Group Bitcoin futures market.
He added: “The CME gap has closed and we’re seeing some bounce back in the short term, but the price action is all over the place. It’s ‘done, it’s back’ – very choppy, illiquid, volatile price action.”
CPI sheds light on uncertain US inflation
Risk assets remain generally under pressure ahead of the release of the first major US macroeconomic data since the government shutdown began.
Related: Will Bitcoin price increase six times in 2026? M2 supply boom prompts comparisons to COVID-19
The September Consumer Price Index (CPI) release on Friday will be the only basis for future interest rate adjustments by the Fed.
“All other releases will remain frozen until the shutdown ends, making the CPI the sole anchor for policy rhetoric and market reactions next week,” trading firm QCP Capital said in its latest “Asian Color” market update.
“As liquidity expectations improve, a weak share price around 0.2% will re-establish a soft-landing trade and strengthen BTC’s upside bias.”
QCP predicted that the decline in DXY would support Bitcoin investors’ “buy on the edge” sentiment.
This article does not contain investment advice or recommendations. All investment and trading moves involve risk and readers should conduct their own research when making decisions.