Profit-taking and de-risking weigh on BTC price after rally to $105K; CPI data looms as next catalyst
Bitcoin (BTC) experienced a sharp pullback on May 12, falling to $102,388 after reaching a local high of $105,819, as traders took profits and de-risked ahead of today’s Consumer Price Index (CPI) release. Despite the correction, analysts suggest the move is likely a short-term technical sell-off, with fundamentals still favoring a broader uptrend.
Key Takeaways:
BTC dipped 3.2%, falling below $103K despite bullish macro headlines
De-risking ahead of the May 13 CPI report likely contributed to the correction
Profit-taking, weak momentum buyers, and sell-wall resistance capped BTC near $106K
On-chain metrics remain strong, suggesting a bullish consolidation
BTC still up 9% over the past week and remains in a high-confidence accumulation phase
Trade Deal Optimism Not Enough to Sustain Rally
The correction came just hours after the U.S.–China tariff agreement was announced in Geneva. U.S. President Donald Trump celebrated the breakthrough with a series of posts on Truth Social, while U.S. equity markets soared, with the Dow Jones gaining 1,000 points at the open.
However, BTC failed to hold above $104,000, leading some traders to believe the “Trump trade deal” was already priced in, and profit-taking ensued.
Strategy’s Bitcoin Purchase, Corporate M&A Fuel Positive Sentiment
Despite the pullback, long-term fundamentals remain strong:
Strategy CEO Michael Saylor confirmed a new acquisition of 13,390 BTC, bringing the firm’s total to 568,840 BTC
Healthcare company KindlyMD shares surged 600% after announcing a merger with Nakamoto Holdings, a Bitcoin investment firm tied to Trump’s crypto advisor, David Bailey
Ongoing corporate treasury announcements and strong ETF inflows continue to support institutional adoption, according to Cointelegraph.
On-Chain Data Signals Short-Term Consolidation
According to Glassnode, key metrics indicate a cooling phase:
“BTC Supply Mapping shows sustained strength in new demand. First-Time Buyers RSI has held at 100 all week. But Momentum Buyers remain weak (RSI ~11), and Profit Takers are rising.”
Additionally:
Spot selling near the $106K resistance wall
Rising open interest and funding rate spikes show long liquidations and new short positions
BTC failed to keep pace with stock market gains, pointing to bid exhaustion
CPI Print Could Spark Renewed Buying
Traders are closely watching the May 13 CPI report, which could define Bitcoin’s next move:
A cooler-than-expected inflation print may revive spot and margin long interest
A hotter CPI could dampen risk sentiment, prolonging the consolidation
ETF inflows, regulatory clarity, and rising crypto adoption could still fuel the next leg up
