📈 #bitcoin Pulls Back Ahead of CPI: What's Driving It? 🤔

Bitcoin is seeing a slight pullback, and here's a look at the key factors at play:

* 💰 Profit-taking: Some short-term holders who bought in under $100K are taking profits. The profit/loss ratio hit 1.9, a level that has historically led to 5-10% pullbacks. 📉

* 🌊 Liquidity risk: Spot volumes are down 22%, while derivatives interest is up 40% weekly.

Plus, we've seen $311M in ETF outflows last week.

📉 This mix could signal higher volatility.

* 📊 Macro watch: All eyes are on the CPI report on August 12! A hotter-than-expected print (>3.3% YoY) could delay Fed rate cuts and put pressure on

#bitcoin . A cooler print, however, could be a bullish signal. 🐂

* 📉 Technical view: #BTC is still holding above its 30-day SMA at $117,336.

However, the combination of low spot liquidity and high derivatives interest ($1.92T) means we could see some wild swings. 🎢

* 🔑 Key Level: The $117,517 level (50% Fib) is crucial support. A break below this could see us testing $114,329 (78.6% Fib). 🛡️

What are your thoughts on the current market?

Let us know in the comments! 👇

$BTC #Crypto #MarketAnalysis #CPI