BTC Reverses 3.5% Pump Ahead of CPI — Will Inflation Data Trigger a Crypto Comeback?

Bitcoin’s (BTC) short-term momentum took another hit on Wednesday after it reversed all of Monday’s pump, dropping from a high of $114,000 back to the $107,000–$108,000 support ￰0￱ 3.5% pullback has left traders uneasy, with many watching the upcoming ￰1￱ Price Index (CPI) data for cues on market ￰2￱ CPI report, originally delayed by the ￰3￱ shutdown, is now scheduled for October ￰4￱ data will be released this upcoming ￰5￱ consensus forecast is 3.1%. What concerns me is that CPI has been rising for the past six months, and we are once again above 3%, even as the Fed has already started lowering interest ￰6￱ the data comes in above 3.1%,… ￰7￱ — Crypto | Stocks | Freedom (@Wealthmanagerrr) October 20, 2025 Consensus expectations sit at 3.1% , but after six consecutive months of rising inflation readings, investors fear another upside surprise could unsettle risk ￰8￱ Pattern Shows Inflation Data Could Trigger a Crypto Comeback Bitcoin’s recent price action mirrors a recurring ￰9￱ last three CPI releases have all coincided with local tops, each following a burst of bullish ￰10￱ has fueled skepticism that another rally ahead of the data could face swift rejection.) October 22, 2025 Bitcoin bull market fractals show that gold topped in October 2020, and Bitcoin exploded right ￰11￱ to asset manager Bitwise , only 3-4% capital rotation from gold to Bitcoin could push BTC to over $240,000 from current ￰12￱ Golden Cross Says Bull Market Not Over While many crypto bears are calling for the top and the end of the bull run, the Bitcoin NVT Golden Cross indicator , which measures whether Bitcoin is overvalued or undervalued relative to on-chain network activity, shows that the top is not yet in.

Similarly, since the massive liquidation event on October 10, the crypto market has experienced a real ￰13￱ from CryptoQuant shows that since January 2025, daily BTC spot volumes on Binance ranged between $3 billion and $5 billion. However, since October 10, volumes have surged, now up between $5 billion and $10 billion per ￰14￱ Market Resurgence After the October 10 Event, Traders Return to Fundamentals “Historically, market cycles have shown that phases of spot accumulation often precede structural recoveries.” – By @Darkfost_Coc ￰15￱ — ￰16￱ (@cryptoquant_com) October 22, 2025 This acceleration shows a renewed interest in spot trading that could lay the groundwork for a more sustainable bullish ￰17￱ Analysis: Bitcoin Support Holds at $108K-$112K Zone On the technical front, Bitcoin’s 3-hour chart shows that the asset has since entered a correction phase, breaking below the 0.5 Fibonacci level and currently testing support near the 0.25 level around $112,000.

The recent price action shows increased volatility with sharp moves in both directions, indicating indecision in the ￰18￱ projected trajectory suggests Bitcoin is trying to find support in the $110,000-$112,000 zone before potentially rebounding toward $117,000. If Bitcoin can hold above $108,000 and form a base, the path of least resistance appears to target the $117,000 level first, with potential to retest the previous highs near $126,000 if bullish momentum returns. However, a breakdown below $106,000 would invalidate this bullish scenario and could trigger further downside pressure.