Bitcoin (BTC) price dropped below the crucial support at $102,000 as the selling pressure surged

The plunge in the BTC price is expected to be the effect of the CPI, which raises concerns over the possibility of marking a new ATH this month

The price of Bitcoin dropped below the crucial support at $102,000 as the selling pressure surged ahead of the US CPI data. The Relative Strength Index (RSI) on the daily chart also reached the overbought levels, indicating that the bears could take over in the next trading session. However, the chances of the price testing the new all-time high this month are still high.

The crypto market experienced a brief respite from the bearishness with the US-China trade war coming to an end, at least temporarily. A 90-day pause was agreed upon, which brought about some relief for the market participants. Soon after the trade war came to a halt, the crypto market experienced a massive surge. The price of Bitcoin rallied past the $100,000, and it even went on to forge highs of $105,000. This sparked possibilities of the world’s leading cryptocurrency hitting a new all-time high in May 2025.

However, the US Consumer Price Index (CPI) data, which is due to be released later today, has brought with it some worries. The data is expected to show an increase in the last 12 months. The Truflation shows 1.68% inflation, while the Federal Reserve expects 2.4%. If in case, the CPI confirms the rates, then it will show the first clear signs of inflationary impacts from President Trump’s tariffs. In such a scenario, the BTC price could probably rise above the corrective phase and reclaim the lost highs.

BTC chart shows possibilities of Golden Cross as RSI hits upper threshold

The chart of Bitcoin is highlighting the possibilities of a Golden Cross forming in the next few days. The 50-day SMA is approaching the 200-day SMA, and a crossover between the two could bring about a strong bullish move in the price. The chances of this crossover are getting brighter with each passing day. On the other hand, the Relative Strength Index (RSI) on the daily chart reached the upper threshold for the first time since November 2024. Just before this, the token underwent a Golden Cross, which resulted in a 60% upswing. Now that the technicals have reached similar levels, another bullish crossover between the 50/200-day SMA could propel the BTC price towards new highs, probably beyond $115K.

On the other hand, the CME gap between $91,970 and $92,730, which has formed recently, may raise some concerns, as the price has been addressing all the gaps lately. The next rejection could be huge, which may drive the BTC price below this range, while the rebound may be based on the strength of the bulls, as the liquidity has already accumulated around this range. Hence, it would be interesting to watch the next course of action of the Bitcoin (BTC) price rally in May 2025.