Bitcoin (BTC<\/a>) tracked $27,500 on May 10 as markets geared up for what should be a positive United States inflation print.<\/p>\n Data from Cointelegraph Markets Pro<\/a> and TradingView<\/a> followed BTC\/USD as it lingered in a narrow trading range ahead of the April Consumer Price Index (CPI) release.<\/p>\n A classic volatility catalyst for risk assets, CPI forms one of the key metrics the Federal Reserve considers when changing interest rates. <\/p>\n The next change is a full month away, but government and private-sector metrics predict declining inflation to persist and even accelerate in the coming months.<\/p>\n \u201cA little bit of stagnation now, but into the coming two to three months, we\u2019re likely to see a gradual decline, and actually a pretty steep decline, in inflation,\u201d financial commentator Tedtalksmacro said in part of YouTube analysis<\/a> on May 9.<\/p>\n Tedtalksmacro referenced both the Cleveland Fed inflation forecast and, separately, \u201cTrueflation,\u201d an unofficial leading indicator for inflation trends which also showed further substantial declines to come.<\/p>\n In a subsequent tweet on the day, Tedtalksmacro separately showed potential BTC price changes relative to various possible CPI numbers, along with the probabilities as per JPMorgan Chase.<\/p>\n CPI gameplan for #Bitcoin<\/a><\/p>\n Above 5.5% –> $25,000 (4% probability)<\/p>\n 5.3% to 5.5%–> $26,500 (25% probability)<\/p>\n 5.0% to 5.2% –> $28,500 (50% probability)<\/p>\n 4.7% to 4.9% –> $29,000 (20% probability)<\/p>\n 4.5% or lower –> $30,000+ (1% probability)<\/p>\n *Probabilities according to JPMorgan<\/p>\n \u2014 tedtalksmacro (@tedtalksmacro) May 10, 2023<\/a><\/p><\/blockquote>\n According<\/a> to CME Group\u2019s FedWatch Tool, market expectations for the Fed to pause its interest rate hikes to tame inflation in June stood at 80% at the time of writing.<\/p>\n Turning to short-term BTC price action, the lasting impact of the Binance \u201cFUD\u201d<\/a> episode earlier in the week meant that Bitcoin bulls remained unable to reclaim levels closer to $30,000.<\/p>\n Related:\u00a0Binance \u2018FUD\u2019 meets CPI \u2014 5 things to know in Bitcoin this week<\/a><\/strong><\/em><\/p>\n Analyzing the status quo among traders, monitoring resource Skew described<\/a> the market as \u201coverly saturated with shorts,\u201d with market makers still selling into small price upticks.<\/p>\n \u201cBinance spot is the market selling aggressor today,\u201d part of Twitter commentary stated<\/a>.<\/p>\n Overnight, fellow monitoring resource Material Indicators noted bid liquidity increasing just below the $26,000 mark on the Binance BTC\/USD order book.<\/p>\n \u201cExpecting to see liquidity moving around the order book between now and the morning economic reports,\u201d part of comments on an accompanying chart read<\/a>. <\/p>\n \u201cThe question is, will some of what’s there now get cleared out and make way for volatility or will local support and resistance get insulated with buy and sell walls?\u201d<\/p><\/blockquote>\n![](\"https:\/\/s3.cointelegraph.com\/uploads\/2023-05\/78ca8d4f-5439-468c-becb-2a575cb50706.png\")
CPI set for months of decline<\/h2>\n
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Binance traders up spot selling<\/h2>\n
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