Bitcoin experienced a slight pullback to $118,500 after a surge towards new all-time highs was met with profit-taking on Monday.
Despite a 2.8% drop from its session peak of $122,200, the leading cryptocurrency managed to maintain a 0.4% gain over the past 24 hours.
Meanwhile, Ether saw a modest 0.8% increase, hovering above $4,200, while other major altcoins like Solana’s SOL, dogecoin (DOGE), and Sui’s native token (SUI) saw minor declines of 3%-4%.
CoinDesk’s senior analyst, James Van Straten, highlighted a gap in the CME futures market following bitcoin’s weekend rally, suggesting a potential pullback to fill the gap between $117,430 and $119,000.
The upcoming U.S. Consumer Price Index (CPI) report on Tuesday, along with the Producer Price Index (PPI) data later in the week, are expected to be significant market catalysts, according to Bitfinex analysts.
Bitfinex analysts also noted the market’s sensitivity to macroeconomic events, cautioning traders to brace for increased volatility and the possibility of a retracement towards $110,000 in the short term.
“The back-and-forth price movements within the current range are likely to persist, as the price fluctuates above and below the levels where new buyers entered the market, particularly around key macro data releases,” the analysts elaborated.
Discover more: Bitcoin’s Weekend Rally Creates CME Gap, Potential Implications