Bitcoin couldn't hold $65,000 for a fourth straight day on Tuesday, with XRP and ether leading the slide. An oil rally has revived inflation worries just ahead of Wednesday's U.S. price data, and traders are already setting their sights on $70,000 as the next big test.
Oil rally complicates the inflation picture
Crude prices have been climbing, and that's feeding directly into the market's anxiety. Higher oil means higher input costs, which tends to push inflation up. That's a problem for risk assets like crypto, because it raises the odds the Federal Reserve keeps rates higher for longer.
Wednesday's consumer price index report is the next checkpoint. If it comes in hot, bitcoin could struggle to find its footing. If it's cooler than expected, that could give bulls the cover they need to push higher.
XRP and ether lead the slide
XRP and ether took the hardest hits among major coins, outpacing bitcoin's decline. Neither has a clear catalyst for the drop — it looks more like traders trimming risk ahead of the data. Altcoins tend to move faster than bitcoin in both directions, and this session was no exception.
Bitcoin's failure to hold $65,000 for a fourth day is notable. That level had been acting as a psychological floor, and each test has brought sellers back in. The longer it stays below, the more the market starts to question whether the next leg up is really coming.
The $70,000 question
Despite the chop, plenty of traders are still eyeing $70,000 as the next major target. The path there isn't clear, though. It likely needs a soft inflation print to open the door, and even then, bitcoin will have to break through the resistance that's been building around $65,000.
For now, the market is in a holding pattern. Wednesday's CPI report will set the tone for the rest of the week, and until then, expect more of the same sideways action.
