Crypto market looks bearish ahead of CPI report, BTC at $60k

The cryptocurrency market is showing signs of an upcoming correction hours before the US Consumer Price Index report is released.

According to data from CoinGecko, the capitalization of the global crypto market decreased by 3.3% in the last 24 hours, falling to $2.22 trillion. As bears continue to dominate, market-wide trading volume moves between $80 billion and $87 billion.

Bitcoin (BTC) has fallen below $61,000 and is trading at $60,800 at the time of writing. The leading cryptocurrency briefly touched an intraday low of $60,300 earlier today.

BTC price, RSI, whale activity and funding rate – October 10 | Source: Santiment

According to data provided by Santiment, whale transactions consisting of BTC worth at least $100,000 decreased from 10,098 to 8,176 in the past day. Decreased whale activity usually indicates market uncertainty or sales from retail traders.

In particular, the BTC funding rate has increased strongly from 0.004% to 0.007% in the last 24 hours. The indicator shows that the betting on Bitcoin’s price movement is mostly bullish. However, a decline below the $60,000 level could lead to increased liquidations and hence a further correction.

According to Santiment data, Bitcoin’s Relative Strength Index is currently at 45. The RSI shows that BTC is currently in a neutral zone ahead of the US CPI report scheduled for today.

US CPI for August stood at 2.5%, a level not seen since March 2021, and is expected to fall to 2.3%. This could increase the likelihood of another rate cut at the Federal Open Markets Committee meeting on November 6 and 7.

One of the bullish catalysts last week was the US jobs report, which pushed the BTC price above $64,000. If US inflation begins to cool again, bullish momentum can be expected in financial markets, including cryptocurrency.