Bitcoin recovered to $106,000, closing its weekend CME futures gap, but market sentiment remained cautious as investors turned their focus to Friday’s crucial US inflation report.
Bitcoin Rebounds but Traders Stay Skeptical
After touching $106,100 earlier in the day, Bitcoin’s price struggled to maintain momentum, hovering near $108,000 at Wednesday’s Wall Street open. Data from TradingView revealed that attempts to break resistance higher were quickly rejected, suggesting that BTC could retest the $100,000 level or lower in the short term.
The renewed strength of the US dollar added pressure to Bitcoin bulls, even as the US Dollar Index (DXY) slightly eased off its highs. Meanwhile, gold continued its downward slide, threatening to lose the $4,000 support level after retreating sharply from record highs.
Crypto trader Roman noted that Bitcoin’s earlier rally was largely driven by gold’s decline. “The only reason we pumped was due to gold dumping,” he commented on X, expressing doubt about the move’s sustainability.
CME Gap Closed, but Market Remains Volatile
According to data from CoinGlass, liquidity bids strengthened below $107,000 as Bitcoin’s price repeatedly tested nearby resistance. Analyst Daan Crypto Trades observed that Bitcoin successfully closed its CME futures gap but warned that price action remained erratic.
“The CME gap was closed and there was a decent short-term bounce, but price action is all over the place,” Daan explained. “It’s very choppy, illiquid, and volatile.”
Such movement reflects a market caught between short-term trading dynamics and broader macroeconomic uncertainty.
CPI Data Takes Center Stage for Crypto and Risk Assets
All eyes are now on Friday’s US Consumer Price Index (CPI) report for September — the first major macroeconomic data release since the government shutdown. With other reports paused, the CPI print will be the Federal Reserve’s primary guide for future interest rate decisions.
Trading firm QCP Capital highlighted the importance of this data in its latest “Asia Color” market update:
“All other releases will remain frozen until the shutdown ends. That makes CPI the singular anchor for next week’s policy rhetoric and market reaction.”
A softer CPI reading near 0.2% could strengthen expectations of a soft landing and boost liquidity sentiment across markets — potentially reigniting Bitcoin’s upside momentum. QCP added that any weakening in the US dollar would likely encourage a “buy-the-dip” response from Bitcoin investors.
Bitcoin Eyes Stability Amid Macro Uncertainty
With volatility persisting and the macro environment still uncertain, Bitcoin’s next move depends largely on Friday’s CPI results. A favorable inflation print could reenergize risk appetite, while higher-than-expected data might pressure BTC toward a deeper correction.
For now, Bitcoin’s $107,000 level remains the battleground between bulls and bears — as crypto markets brace for another potentially pivotal macro moment.
