$BTC retreats from $105K high as traders de-risk; inflation data eyed as next major catalyst.
Bitcoin ($BTC) saw a notable correction on May 12, falling to $102,388 after peaking at $105,819, as investors locked in profits and reduced risk exposure ahead of the U.S. Consumer Price Index (CPI) release on May 13. Despite the pullback, analysts view the move as a short-term technical sell-off within a broader bullish trend.
Key Highlights:
BTC dropped 3.2%, slipping below $103K despite strong macro sentiment.
Pre-CPI de-risking and sell-wall pressure near $106K triggered the reversal.
On-chain data remains bullish, indicating healthy consolidation.
BTC is still up 9% over the past week, with accumulation trends intact.
Trade Deal Fails to Sustain Momentum
The correction followed news of a U.S.–China tariff agreement announced in Geneva. President Trump praised the deal on Truth Social, sparking a 1,000-point rally in the Dow Jones. However, Bitcoin failed to maintain momentum above $104K, suggesting the news was already priced in.
Institutional Activity and M&A Support Bullish Outlook
Despite near-term volatility, underlying fundamentals remain strong:
Strategy CEO Michael Saylor disclosed a new 13,390 BTC purchase, raising the firm’s holdings to 568,840 BTC.
KindlyMD’s stock soared 600% after merging with Nakamoto Holdings, a Bitcoin-focused firm connected to Trump’s crypto advisor David Bailey.
ETF inflows and rising corporate treasury adoption continue to support institutional interest.
On-Chain Metrics Point to Short-Term Cooling
Data from Glassnode indicates a consolidation phase:
First-Time Buyers RSI remains strong at 100, while Momentum Buyers RSI hovers near 11.
Profit-taking activity is rising, with selling pressure near $106K.
Funding rates and open interest suggest long liquidations and fresh short positioning.
BTC underperformed equities, signaling temporary bid fatigue.
CPI Report Could Be Next Market Mover
Traders are watching today’s CPI data closely. A cooler-than-expected inflation print could reignite long interest, while a hotter report may extend consolidation. Regardless, continued ETF inflows, corporate M&A activity, and favorable regulatory developments may provide fuel for Bitcoin’s next.
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