Bitcoin Struggles to Hold Gains Amid CPI Surprise and Tariff Pause as Whale Activity Draws Focus

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Bitcoin experienced notable price fluctuations on Wednesday, driven by the release of March’s Consumer Price Index (CPI) data and a temporary pause in U.S. trade tariffs. Despite these seemingly favorable developments, the broader risk asset markets—including Bitcoin—struggled to maintain upward momentum.

Inflation Slows But Markets Retreat

The CPI report from the U.S. Bureau of Labor Statistics reported that inflation was easing more than anticipated. Notably:

  • Core inflation rose 2.8% year-over-year—its slowest pace since March 2021.
  • Headline inflation came in at 2.4%, bringing it closer to the Federal Reserve’s 2% target.

Despite this positive inflation news, equity markets dropped sharply. The S&P 500 fell by 3%, while the Nasdaq Composite was down by 3.7%.

Bitcoin’s Movement and Technical Resistance

Bitcoin initially reacted positively to the tariff delay, however, the rally proved short-lived. The cryptocurrency quickly pulled back and tumbled below key technical levels.

Analysts are closely watching the following levels:

  1. Resistance in the $83,000–$85,000 range.
  2. Support seen near $81,100.

Furthermore, the 21-day and 50-day moving averages continue to act as resistance barriers, limiting upward price momentum.

Whale Activity and Market Speculation

Large holders of Bitcoin—commonly referred to as “whales”—are once again drawing market attention. Significant bids and asks near current market prices are believed to be influencing overall market behavior.

One notable entity, nicknamed “Spoofy the Whale,” has reportedly been shifting liquidity around strategic levels. This movement has spurred speculation of a potential upside move towards the $93,300 mark, assuming market momentum resumes.

Market Outlook

With mixed macroeconomic signals and technical hurdles, the Bitcoin market appears to be in a holding pattern. Short-term price direction may depend on a combination of upcoming economic data, technical chart developments, and the continued role of whale activity.

For more detailed analysis, visit the original article on TradingView.

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