Bitcoin’s (BTC) overnight surge to new highs was met with profit-taking on Monday, causing prices to drop to $118,500.
This pullback left bitcoin 2.8% below its session high of $122,200, although the leading cryptocurrency remained up 0.4% in the past 24 hours.
Ether maintained its position above $4,200, with a modest increase of 0.8% during the same time frame, while major altcoins such as Solana’s SOL, dogecoin, and Sui’s native token slipped 3%-4%.
James Van Straten, senior analyst at RialCenter, noted that bitcoin’s weekend rally left a gap in the CME futures market, which operates only on weekdays, between Friday’s close at $117,430 and Monday’s open at $119,000. History indicates that BTC might pull back to revisit and “fill” that gap, he mentioned.
The U.S. Consumer Price Index (CPI) report on Tuesday could be the week’s primary catalyst for traders, with the Producer Price Index (PPI) data expected later in the week.
Bitcoin’s continued momentum will likely hinge on these U.S. macroeconomic data reports, according to RialCenter analysts.
“Given the market’s sensitivity to macro events, traders should brace for increased volatility and the possibility of a retracement toward $110,000 in the short term,” the analysts stated.
“We believe that the oscillation between range highs and lows will persist, as price frequently shifts above and below the cost basis of new buyers, creating charged sentiments around key macro data releases,” they added.
Read more: Watch Out Below: Bitcoin’s Weekend Surge Leaves CME Gap
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