The price of Bitcoin (BTC) struggled to maintain its weekly gains on April 10, as US stocks overlooked favorable inflation data. According to recent data, the volatility of BTC’s price increased coinciding with the release of the March Consumer Price Index (CPI) figures, which came in significantly lower than anticipated, indicating a deceleration in inflation despite widespread market disruption caused by US trade tariffs.
An official announcement from the US Bureau of Labor Statistics (BLS) noted, “The overall index rose by 2.4 percent for the 12 months ending in March, down from a 2.8 percent rise for the previous year ending in February. The index excluding food and energy increased by 2.8 percent over the past year, marking the smallest rise since March 2021.”
Despite appearing to provide support for risk assets, US stocks were not inclined to rally at the opening, with the S&P 500 and Nasdaq Composite Index dropping by 3% and 3.7%, respectively, at that point.
“Markets believe that the recent strong jobs report combined with cooler inflation data gives the go-ahead for Trump to persist with the trade war,” a trading resource commented on X. The source also recognized the significance of rapidly decreasing inflation, which tariffs had not yet impacted. “This reflects the lowest Core CPI inflation rate in four years,” it added in another thread. “It also positions Headline CPI inflation only 40 basis points above the Fed’s target of 2%. Inflation has decreased by 60 basis points over the last three months alone.”
In terms of BTC price movements, traders took a cautious approach while awaiting the US’s decision to delay most tariff implementations for 90 days. A well-known trader suggested that reclaiming at least $83,000 was vital for bullish momentum. “BTC experienced a significant move following the announcement about the tariff pause,” he shared with followers on X. “While BTC showed more resilience on the downside, equities surged as a result of this pause, which is expected as they are directly impacted by tariffs.”
An accompanying chart illustrated crucial trend lines surrounding the price point. “BTC retraced back to the 4-hour 200MA (in purple), which has constrained prices for the past couple of weeks. The $83,000 to $85,000 range is crucial for bulls to surpass,” he added. “Just below that, we see the ~$81,100 horizontal level, which is another significant area to monitor. Trading below this level could result in a challenging deviation/stop hunt.”
In examining the order book liquidity, a co-founder of a trading resource pointed out the 21-day and 50-day simple moving averages (SMA) on the daily chart. “The initial attempt to break through resistance at the 21-Day MA was rejected, but BTC’s bid liquidity is increasing, so another attempt may follow,” he remarked earlier in the day. “If bulls can manage to flip the 21-Day MA into support, there will be stronger resistance where liquidity is concentrated around the trend line and the 50-Day MA.”
He reiterated the influence of large-volume traders shifting liquidity above and below Bitcoin’s spot price on price movements. The activities of one specific entity, previously referred to as “Spoofy the Whale,” continued to be a focus of attention. “If ‘Spoofy’ pulls us up, we might have a shot at the 100-Day MA and the 2025 opening price of $93,300, which could lead us back to six-figure Bitcoin,” he concluded.
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