On Friday, the cryptocurrency market remained stable, with Bitcoin (BTC) trading near $71,700, a slight change from its previous price of $71,953.82, while ether (ETH) held steady at $2,180. This period has been marked by low volatility in prices. The daily Bollinger bands, which gauge market volatility, are at their most constricted since early 2024. Crypto analyst Eric Crown noted that historically, such narrow ranges—Bitcoin having stayed within the $63,000 to $75,000 bracket since February—have ended with a significant 40% price swing.
A breakout above $75,000 would likely trigger upward momentum by capturing short traders who need to purchase at current prices to cover their positions. Conversely, if Bitcoin dips below $70,000 in the short term, it could lead to the liquidation of approximately $200 million worth of long positions betting on a rise, as per CoinGlass’ liquidation heatmap.
The release of the U.S. consumer price index (CPI) data on Friday is anticipated as a key catalyst. March inflation is projected at 3.3% year-on-year, largely due to rising energy costs. Typically, higher-than-expected inflation can boost the U.S. dollar, potentially exerting downward pressure on risk assets like Bitcoin.