Bitcoin Price Pulls Back Below $78,900 Amid Inflation Data Uncertainty

The Bitcoin price has extended its pullback to trade below $78,900 after a 1.53% loss the previous day. Analysts suggest that the BTC outlook remains constructive but not yet conclusive, with Friday's US inflation data in focus.

QCP Capital said in a report on Monday that US inflation data could be the key deciding variable for crypto markets this week, noting that 'for crypto, the setup remains constructive but not yet conclusive.' Strong ETF demand continues to provide support underneath the market, but technical resistance at $80,000-$82,000 remains a limiting factor.

Escalating tensions between the US and Iran are raising concerns about energy supplies and renewed inflationary pressures. If Friday's US Consumer Price Index (CPI) confirms that inflation continues to ease toward the central bank's 2% target, the case for keeping interest rates unchanged could strengthen.