Bitcoin (BTC) launches into US CPI week with new multimonth highs as traders dig in for volatility.

Bitcoin (BTC) launched into a new week of trading eyeing US Consumer Price Index (CPI) data and continuing to hit multi-month highs as bulls pressed on.

BTC/USD set new highs of $105,706 on Bitstamp Monday, continuing a strong performance that saw it pass $100,000 last week.

The move came as traders braced for a busy week of macroeconomic data, beginning with April’s CPI print and continuing with the Producer Price Index (PPI).

Optimism over a US-China trade deal also threatened to bring additional volatility, with traders largely expecting a deal to be announced soon.

Bitcoin MACD cross copies October 2024

"Price action was making it seem like something big was coming. Any tiny dip was getting scooped up instantly and price started to move ~1 hour prior to the announcement," popular trader Daan Crypto Trades wrote about the tariffs phenomenon in part of a post on X.

Fellow trader James Wynn continued by forecasting additional volatility to come.

"It's about to get seriously volatile for $BTC. Sharp wicks down, sharp wicks up," part of his own X post stated.

An accompanying chart showed exchange order book liquidity from monitoring resource CoinGlass. To the upside, $106,000 was the key area to break through on lower timeframes.

Others pointed to a bullish cross on the moving average convergence/divergence (MACD) indicator, which on weekly timeframes provided a key upside impetus.

"Probably the biggest signal you can get at the moment," popular trader Moustache summarized to X followers, noting that the last such cross was in October 2024.

As Cointelegraph reported, MACD had previously offered mixed signals, with daily performance giving traders pause for thought.

Bitcoin bulls narrowly miss key weekly target

Despite hitting its highest levels in three-and-a-half months after the weekly close, Bitcoin failed to flip a key support line that would secure a fresh breakout.

The weekly candle closed at around $104,100 — a stone's throw from what analysis previously described as the ticket to price discovery.

Updating X followers on the topic, popular trader and analyst Rekt Capital confirmed a rejection at $104,500.

"Going forward, it'll be interesting to see if Bitcoin can form a Bullish Divergence on the RSI indicator to negate the threat of a Bearish Divergence that formed last week," he concluded.

Before the close, BTC/USD had given strong cues that a retest of all-time highs could be on the cards and even a venture beyond.

"Bitcoin is on the cusp of beginning Price Discovery Uptrend 2," Rekt Capital stated at the time.

Price thus returned to a trading range only recently reclaimed during a week in which bulls enjoyed gains of 9.9%.

As Cointelegraph reported, BTC price targets already included $150,000 and higher during June.

CPI week dawns with uncertainty “everywhere”

Another crunch macroeconomic data week for risk-asset traders makes for a potentially volatile environment for Bitcoin and altcoins.

Two key inflation markers, the Consumer Price Index (CPI) and Producer Price Index (PPI) print for April, are due in the coming days.

At the same time, markets are on edge over US trade policy, with news of a deal with China sparking flash moves in crypto over the weekend.

"We have yet to receive a statement from Trump directly on the US-China trade deal. But optimism is certainly building that the trade deal will be announced this week.

Kobeissi continued that retail earnings reports could also shape market performance over the coming week.

Continuing, trading firm Mosaic Asset argued that trade news aside, risk assets lacked bullish impetus thanks to an ongoing hawkish policy stance from the US Federal Reserve and Chair Jerome Powell.

The Fed left interest rates unchanged at its meeting last week, with markets increasingly pricing out a cut before July.

"While there is some easing of tensions on the trade front, the latest interest rate setting meeting by the Federal Reserve isn't delivering any bullish catalysts.," Mosaic Asset wrote in the latest edition of its regular newsletter, "The Market Mosaic."

The latest data from CME Group's FedWatch Tool puts the chance of a rate cut in June at under 15%, while the Fed's July meeting attracts around 50% odds.

Euphoria vs. ‘smart distribution’

The proportion of the Bitcoin supply held in profit has reached more than 98% — something barely seen before, new research says.

In one of its "Quicktake" blog posts on May 11, onchain analytics platform CryptoQuant examined whether the Bitcoin investor base was inclined to "smart distribution" at current levels.

"When BTC's supply