Bitcoin struggles at key technical levels, awaits US CPI data for fresh volatility

Key takeaways

• Bitcoin trades around $81,000, maintaining a bullish bias but facing resistance at the 200-day EMA. 
• Traders await the US Consumer Price Index (CPI) data, which could trigger volatility in BTC and risky assets. 

US CPI report could drive volatility for Bitcoin

Bitcoin traders are awaiting the release of the US Consumer Price Index (CPI) for April, scheduled for Tuesday at 12:30 GMT. 

The report is expected to show a sharp increase in inflation, driven in part by higher oil prices amid the ongoing US-Iran tensions.

The monthly CPI is forecast to rise by 0.6%, following March’s 0.9% increase. The annual CPI reading is expected to climb to 3.7%, up from 3.3% in March, marking the highest level since September 2023. Core CPI, excluding food and energy prices, is anticipated at 0.3% for the month and 2.7% year-over-year.

The data will likely shape expectations for future interest rate cuts by the Federal Reserve (Fed), potentially triggering volatility in Bitcoin and other risk assets. 

Additionally, eleva...