Crypto News: Bitcoin Faces US Selling Pressure as CPI Inflation Declines for First Time Since Mid-2024

Key Takeaways:Bitcoin hit a three-day high of $84,437 before reversing due to Wall Street selling pressure.US CPI inflation fell to 2.8%, below expectations, marking its first decline since July 2024.Bitcoin ETF outflows totaled $153.87 million, signaling growing caution among institutional investors.BTC is battling to hold support at $82,000 amid mixed macroeconomic signals.Bitcoin Price Reacts to Softer US Inflation DataBitcoin (BTC) briefly surged to $84,437 on March 12 following the lower-than-expected US Consumer Price Index (CPI) inflation report, before reversing gains as US market trading began.The US CPI print came in at 2.8% YoY, below the forecasted 2.9%, while Core CPI inflation dipped to 3.1% versus expectations of 3.2%. This marks the first decline in both Headline and Core CPI since July 2024, hinting at a cooling inflation trend that could influence Federal Reserve rate policy.However, Wall Street selling pressure quickly erased Bitcoin’s gains, pushing BTC down to $82,400 before stabilizing around the daily open.“Any dips into the top of the CME Gap would constitute a post-breakout retest attempt to fully confirm the exit from this CME Gap,” analyst Rekt Capital noted on X, suggesting BTC is attempting to reclaim bullish momentum.Bitcoin Battles Key Moving Averages as Bulls StruggleTechnical traders are closely watching BTC’s battle with the 200-day SMA and EMA, which are acting as key bull market support trendlines at $83,550 and $85,650, respectively.“Bulls have work to do to reclaim these levels,” said trader Daan Crypto Trades.“Last year, BTC chopped around these levels for over three months before moving higher.”A strong close above these moving averages could signal a potential breakout toward $90,000, while failure to reclaim them may lead to further downside pressure.Bitcoin ETF Outflows Signal Institutional CautionDespite the CPI-driven market optimism, Bitcoin ETFs recorded a net outflow of $153.87 million, with Grayscale’s GBTC selling 641 BTC worth $56.45 million.“Bitcoin ETF outflows signal growing caution among institutional investors,” stated QCP Capital, adding that BTC could see increased volatility depending on the Federal Reserve’s next rate decision.Key Levels to WatchSupport: $82,000 (short-term), $80,000 (psychological level).Resistance: $83,550 (200-SMA), $85,650 (200-EMA), $90,000 (macro target).With macro risks mounting, traders will be watching for BTC’s ability to hold above $82,000, while further institutional outflows may limit upside potential. The Federal Reserve’s interest rate decision next week could be the next major catalyst for Bitcoin’s price action.