Key points:
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Bitcoin retreats to near $106,000 as gold struggles to find support after major daily losses.
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BTC price action continues low-time frame liquidity games after failing to hold support higher.
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CPI week begins to take its toll on crypto and risk assets.
Bitcoin (BTC) stuck to $108,000 after Wednesday’s Wall Street open as gold sought new lows.
Bitcoin vs. gold celebrations cut short as price U-turns
Data from Cointelegraph Markets Pro and TradingView tracked volatile BTC price action after a trip to $106,100 earlier in the day.
Attempts to crack resistance higher up ended in failure, with market commentators warning of a retest of $100,000 or even lower levels to come.
A resurgence in US dollar strength added to Bitcoin bulls’ problems, with the US dollar index (DXY) nonetheless easing off at the time of writing.
Gold, meanwhile, threatened to lose $4,000 as support, continuing its swift comedown from all-time highs.
“Again, the only reason we pumped was due to gold dumping,” crypto trader Roman wrote on X, referring to local highs above $114,000.
“I don’t think this move has any validity & binance is hard selling everything.”
Data from monitoring resource CoinGlass showed bid liquidity strengthening below $107,000, with price attacking new asks immediately overhead.
“This is a key area before retesting the Friday lows and wick not much lower than that,” trader Daan Crypto Trades continued.
Daan Crypto Trades noted that price had closed its latest weekend “gap” in CME Group’s Bitcoin futures market.
“The CME gap was closed and have a decent bounce in the short term but price action is all over the place. It truly is, ‘It’s over, we’re back szn’ aka, VERY choppy, illiquid and volatile price action,” he added.
CPI to shine light on murky US inflation
Risk assets remained broadly under pressure ahead of the first major US macroeconomic data print since the government shutdown began.
Related: Bitcoin price to 6X in 2026? M2 supply boom sparks COVID-19 comparisons
The Consumer Price Index (CPI) release for September, due Friday, forms the Federal Reserve’s only point of reference for future interest-rate adjustments.
“All other releases will remain frozen until the shutdown ends. That makes CPI the singular anchor for next week’s policy rhetoric and market reaction,” trading company QCP Capital said in its latest “Asia Color” market update.
“A softer print near 0.2% would re-anchor the soft-landing trade and reinforce BTC’s upside skew as liquidity expectations improve.”
QCP predicted that any weakening in the DXY would support a “buy the dip” mentality among Bitcoin investors.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
