Bitcoin Trades Below Key Resistance Ahead of US Inflation Report

Bitcoin is trading below $64,000 ahead of the US inflation report, which could determine whether it breaks toward $70,000 or extends its decline. Investor sentiment remains cautious, with CoinMarketCap's Fear and Greed Index registering 37, placing the market in the 'fear' category.

The index suggests traders remain reluctant to increase their exposure to volatile assets. Analysts expect headline US inflation to ease to 3.4% year over year, while core inflation is forecast to decline to 2.5%. A softer-than-expected reading could reinforce the disinflation narrative created by last week's disappointing employment report.

However, a hotter reading could trigger the opposite reaction, reviving interest-rate concerns and pressuring cryptocurrency prices. Bitcoin remains below key moving averages, with all three major EMAs positioned above the current price.