Bitcoin Market Breaks Down Ahead of Key CPI Data Release

The Bitcoin market has broken down after five consecutive days of trading at high levels.

A sustained upward consolidation during the day made it seem as though the bulls were about to break out, but the market weakened suddenly in the evening, dropping below the previous day's initial rally zone and leading to a concentrated washout of bullish positions.

The biggest variable now is tonight's U.S. CPI data, which can trigger quick spikes, false breakouts, or even a double-sided squeeze in the market.

Approximately $116.55 million in liquidations occurred across the network in the past 24 hours, with both BTC and ETH derivatives markets showing a net short bias, indicating that short-term sentiment has clearly weakened.