Bitcoin Price Forecast: BTC slips below $103,000 as traders lock in profits ahead of US CPI :

Bitcoin extends its decline on Tuesday, slipping below $103,000.
Santiment data shows traders are taking profits ahead of the US CPI release.
Analysts suggest that if macro conditions stay favorable, short-term dips may be quickly absorbed, keeping BTC’s bullish outlook intact.
Bitcoin (BTC) extends its decline on Tuesday, slipping below $103,000 at the time of writing as traders book profits following last week’s over 10% rally. The move comes ahead of the release of the US Consumer Price Index (CPI) data for April, which could bring volatility into risky assets like BTC. Despite the short-term decline, a report from analysts suggests that if macro conditions stay favorable, short-term dips may be quickly absorbed, keeping BTC’s bullish outlook intact.
Some BTC holders realize profits ahead of the US CPI
Bitcoin began this week on a positive note, climbing during the Asian session on Monday, as news came in that the US and China had agreed to a tariff reduction for 90 days. However, those gains were largely erased during the New York session as the largest cryptocurrency by market capitalization dropped sharply below $103,000, hitting an intraday low near $100,700. At the time of writing on Tuesday, it is trading in the red at around $102,600 during the early European trading session.
Santiments’ Network Realized Profit/Loss (NPL) metric shows BTC holders are booking some profits after a massive gain of over 10% in the previous week. This metric computes a daily network-level Return On Investment (ROI) based on the coin’s on-chain transaction volume. Strong spikes in a coin’s NPL indicate that its holders are, on average, selling their bags at a significant profit. On the other hand, strong dips imply that the coin’s holders are, on average, realizing losses, suggesting panic sell-offs and investor capitulation.
As shown in the chart below, the metric showed a strong spike on Tuesday, indicating that holders are, on average, selling their bags at a significant profit and increasing the selling pressure.
The short-term profit booking activity comes ahead of the highly anticipated release of the US April CPI data on Tuesday, which could inject fresh volatility into the market, and traders should watch for it.
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