Bitcoin (BTC) Stalls Despite Positive Inflation Data as US Keeps Tariffs on China, Analysis Says

Bitcoin and crypto markets stalled despite positive inflation data thanks to the US keeping tariffs on China, analysis says.

Bitcoin (BTC) and crypto markets stalled despite positive inflation data thanks to the US keeping tariffs on China, analysis says.

After a volatile April, markets clocked up a third day of consolidation on Wednesday, this time pivoting on the implications of the US-China trade deal.

According to new analysis, however, the upbeat Consumer Price Index (CPI) report failed to keep markets in an optimistic mood.

Positive CPI not enough for markets to continue higher

After initially rallying, Bitcoin pulled back as it emerged that the deal involved tariffs of 55% on Chinese imports, an even higher rate than at present.

The US-China trade "deal" includes a "total of 55% tariffs" for the US.The current US tariff rate on China is 30%, as of the May 12th deal.Did the US just raise tariffs on China in a trade deal?

For Keith Alan, co-founder of trading resource Material Indicators, this was a clear potential driver of short-term BTC price action, more so than the CPI inflation report.

“Despite having a relatively positive economic report, and news that we almost have a trade deal with China, TradFi and Crypto Markets were slightly down on Wednesday,” he summarized on X.

Reviewing order book liquidity, Alan suggested that the overall picture remained conducive to the Bitcoin bull case.

“TLDR: When in doubt, zoom out,” another X post summarized alongside data from one of Material Indicators’ proprietary trading tools.

Alan said that he did not expect the “bottom to drop out” and leave sellers in the market despite the relative lack of bids.

“Support tests are healthy,” he concluded.

As Cointelegraph reported, other key support levels have crystallized during Bitcoin’s consolidation phase below its current $112,000 record.

Chief among these is the $100,000 mark, now popular as a psychological boundary with implications for sentiment should it fail to hold.

Alan now sees its status remaining important in the long term, even during the next bear market.

“As I stated back in December when Bitcoin first started flirting with $100k, it will be important to see some consolidation above $100k with no wicks below to validate the R/S Flip.”