Bearish Signals Stack Up for Bitcoin

February 12 and 13, 2025, will be remembered as two particularly difficult days for Bitcoin, which had to face a double dose of bad news on the U.S. inflation front. The queen of cryptos, which had already fallen below 95,000 dollars on Wednesday, continues to struggle to maintain this critical level.

Inflation that Unsettles the Market

Wednesday, February 12, had already set the tone with a Consumer Price Index (CPI) monthly rate of 0.5%, which is 0.2% above expectations.

Today, the Producer Price Index (PPI) drives the point home with a 0.4% increase for the month and 3.5% for the year, again surpassing analysts’ expectations of 0.3% and 3.2%, respectively.

On the Binance platform, the world’s leading cryptocurrency exchange, an intense battle is unfolding between buyers and sellers. The data from CoinGlass reveal a concentration of buy orders around 95,000 dollars, while significant resistance is forming around 97,000 dollars.

According to analyst Skew, although selling pressure is present, it is not considered “significant” at the moment. However, leveraged traders continue to liquidate their long positions in the face of bearish pressure.

The Political Impact on the Price of Bitcoin

The market’s attention is now turning towards Donald Trump’s response to this inflationary surge. The analysis firm QCP Capital highlights the contrast between two positions: on one side, Jerome Powell, the Chairman of the Federal Reserve, maintains a firm stance against inflation; on the other hand, Trump calls for an interest rate cut.

The odds of a rate cut by the Fed in March are dwindling. The CME Group’s FedWatch tool now indicates only a 2.5% chance for a 0.25% reduction at the next meeting.

Some analysts, like Castillo Trading, remain optimistic and do not rule out a rebound of Bitcoin towards 104,000 dollars, a level corresponding to the point of control in the BitMEX futures market. However, they advise patience in this context of uncertainty.

The situation for Bitcoin remains delicate, caught between inflationary pressures and American political stakes. The coming weeks will be crucial in determining whether the cryptocurrency can maintain its current level or if it will yield to the bearish pressure indicated by some traders.