#CryptoCPIWatch As of Tuesday, May 13, 2025, the cryptocurrency market is experiencing heightened volatility in anticipation of the U.S. Consumer Price Index (CPI) data release scheduled for 8:30 AM ET (5:30 PM PKT).

Bitcoin (BTC) has recently dipped below $102,400 as traders engage in profit-taking following a significant rally last week. Similarly, Ethereum (ETH) and BNB have also seen declines, reflecting a cautious market sentiment ahead of the CPI announcement .

Market Expectations:

CPI Forecast: The market anticipates a year-over-year CPI increase of 2.4%. A higher-than-expected figure could signal persistent inflation, potentially leading to tighter monetary policy and further pressure on risk assets like cryptocurrencies. Conversely, a CPI reading at or below expectations may bolster market confidence and support crypto prices .

Technical Indicators:

Bitcoin's RSI Divergence: Analysts have observed a bullish divergence in Bitcoin's Relative Strength Index (RSI), suggesting a potential weakening of selling momentum. This technical pattern could indicate a possible price reversal, contingent on favorable macroeconomic data .

Strategic Considerations:

Trading Approach: Given the anticipated volatility surrounding the CPI release, traders may consider closely monitoring key support and resistance levels. A CPI result aligning with or below expectations could present buying opportunities, while a higher reading might necessitate caution due to potential market downturns.

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