Can it break new highs again? CPI data is key
Market sentiment has recently rebounded, indicating an increase in optimism in the Bitcoin market.
However, this shift in bullish sentiment may suggest that the market is about to peak. As Bitcoin enters the greed zone, concerns about the asset being overbought have arisen.
Historically, this usually indicates that Bitcoin's price is about to peak, and a reversal may follow.
Moreover, the upcoming Consumer Price Index (CPI) report set to be released on June 11 (Wednesday) will have a significant impact on Bitcoin's macroeconomic dynamics.
The CPI for May is expected to rise by 0.2%, increasing the annual inflation rate from 2.3% in April to 2.5%. This increase may exacerbate market uncertainty, especially if inflation comes in higher than expected.
Additionally, recent market sell-offs have led to a more cautious wait-and-see attitude among investors. In fact, there has been an increase in the phenomenon of investors selling Bitcoin. Coupled with the release of CPI data, this could lead to an accelerated decline in the market
