$BTC Bitcoin may experience a "technical drop" in the short term below $100,000 before the CPI release on May 13

Bitcoin plummeted after nearly reaching $106,000, but several data points suggest that the correction will be brief.



Market Analysis

Key Points:

A possible risk reduction ahead of the CPI release on May 13 may be influencing the price correction of BTC on May 12.

The market structure of Bitcoin and the qualitative fundamentals remain bullish, suggesting that today's correction may be short-lived.

The price of Bitcoin (BTC) stumbled briefly on May 12, dropping to $102,388 after reaching an intraday high of $105,819 during the U.S. trading session. At first glance, the abrupt correction seemed unexpected given the context of positive news that day. Since Sunday night (May 11), traditional media headlines have reported positive developments in the trade negotiations between the U.S. and China taking place in Switzerland, and throughout the night, President Trump conducted his victory campaign through posts on Truth Social highlighting the positive aspects of the agreement.

BREAKING: U.S. announces a trade agreement with China in Geneva

As news of the tentative agreement broke, U.S. stock futures markets surged, and these gains materialized in a 1,000-point jump in the Dow at the opening bell. Looking beyond the temporary resolution of the trade war between the U.S. and China, Bitcoin has accumulated consecutive victories over the last two weeks. On May 12, Strategy CEO Michael Saylor announced that the company had acquired 13,390 Bitcoin, raising its total balance to 568,840 BTC.

On the same day, shares of the healthcare company KindlyMD surged by up to 600% after announcing the merger with Nakamoto Holdings, a company involved in