Bitcoin’s price dropped below $100,000 on May 12, briefly touching $102,388 after hitting an earlier high of $105,819. The sudden pullback surprised many, especially with positive news driving broader market sentiment.
The dip comes just a day before the U.S. Consumer Price Index (CPI) report on May 13, which is expected to influence markets. Traders appear to be taking profits and reducing risk ahead of the economic data.
Despite the dip, analysts believe the correction is temporary. According to Glassnode, Bitcoin’s fundamentals remain strong, with new buyers continuing to enter the market. However, momentum buyers are weak, and profit-taking is rising, signaling a possible short-term consolidation.
Several bullish events recently pushed Bitcoin’s price higher. These include:
- A positive trade deal announcement between the U.S. and China.
- MicroStrategy CEO Michael Saylor purchasing over 13,000 BTC, increasing the company’s holdings to nearly 569,000 BTC.
- A major merger between KindlyMD and Nakamoto Holdings, which boosted investor interest.
While these events show growing institutional support, the recent rally faced strong resistance near the $106,000 level. Data from futures and spot markets shows increased selling pressure and liquidations, indicating a shift in trader sentiment.
Market watchers say Bitcoin’s correction may not last long. If the May 13 CPI report shows cooling inflation, risk appetite could return, and Bitcoin may rebound quickly. The long-term outlook remains positive as Bitcoin adoption grows in both finance and policy circles.
Until then, the market waits.
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